Workers’ compensation is a type of insurance that covers all work-related injury expenses.
No one can predict an injury at a workplace, but it’s important for employers to have certain measures that can alleviate the financial burden that comes after an injury.
Most people think that workers’ comp only covers the medical bills, but it goes a bit deeper. Workers’ comp covers lost wages and entitles workers to a portion of their salary as a disability payment.
However, workers’ compensation doesn’t cover incidents that aren’t job-related or happened while the subject was intoxicated or was breaking company policy.
However, Texas is the land of the free and sometimes some regulations that are enforced in other states don’t apply in Texas.
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Are All Employers Required to Have Workers’ Comp in Texas?
Texas is the only state that doesn’t require employers to have Workers’ Comp. But if you don’t purchase a policy, this might cost you even more in the future.
It is a good idea to ask your employer what are the employee benefits in Texas if they have signed up for an employee benefits package.
If an employer doesn’t secure workers’ comp for their employees they can be left open to lawsuits if an injury occurs.
Businesses that don’t provide workers compensation in Texas can seriously lose out on a lot of opportunities as potential employees may avoid them.
Furthermore, getting workers’ comp is minutes away with the power of the internet and not having one can cost employers weeks in a courtroom.
Whether you choose to purchase workers’ comp or not, you need to inform your employees regarding the workers’ comp status. Employes have the right to waive their workers’ comp right and retain the right to sue the business.
If an employee decides to discontinue their workers’ compensation coverage, the Division of Workers’ Compensation at the Texas Department of Insurance and the employer should be timely informed.
How Long Does It Take to File for Workers’ Comp?
After the sustained injury, the employee must report in no less than 30 days. The formal paperwork regarding the workers’ compensation claim must be filed within one year of the sustained injury.
If an employee doesn’t inform the business employer within 30 days that an injury occurred, they must lose the right to file for workers’ compensation.
The Benefits of Workers’ Compensation
There are four main benefits to being covered by workers’ compensation and those are:
- Medical Benefits. The compensation covers all the medical bills and treatment;
- Burial Benefits. In case of an employee death, the workers’ comp covers part of the burial expenses;
- Death Benefits: The compensation helps the family if an employee dies by providing them with 75% of the employee’s average weekly wage;
- Income Benefits: Temporary income, impairment income, supplemental income, and lifetime benefits.
If you sustain an injury in Texas and miss out on more than seven days of work, workers’ compensation will provide you with temporary income benefits.
These benefits are 70% of the difference between the potential amount that can be earned and the average weekly wages.
Impairment benefits are calculated by the severity of the impairment and the rating given by your health care provider.
Supplemental income is monthly and comes in after your impairment benefits have stopped. Supplemental income is 80% of the insured’s average weekly wage
Lifetime benefits If the injury is extremely severe, you might be eligible for lifetime benefits. Lifetime income benefits are 75% of your average weekly wage and in addition to that grow by 3% each year.
Injuries that are not covered by Workes’ Comp include injuries that resulted from horseplay, self-inflicted injuries, and injuries that happened while the employee was under the influence.
The Cost of Workers’ Compensation Insurance
There are many factors to take into account when calculating how much the compensation will cost – the location, type of industry, and the number of workers.
Certain professions have higher injury risk and that’s why the insurance might be pricier. It’s important to add that every business can use financial protection offered by the workers’ compensation insurance.
Final Thoughts
Workers’ Compensation is regulated by the Texas Department of Insurance, the Division of Workers’ Compensation, and covers work-related injuries by easing the financial burden on those affected.
A business without proper insurance can greatly suffer during the process of hiring as employees want to ensure their safety and the safety of their loved ones.
We hope that our quick guide helped you better understand how workers’ compensation works in Texas.
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