The Advantages of Workers Compensation Insurance

Workers Compensation policy in Texas

If youre a business owner, you may be wondering if its worth it to get Workers Compensation insurance. The Workers Compensation policy in Texas allows employers to decide for themselves if they want to provide it to employees. Although it may be tempting to forgo insurance to save money up-front, it could cost you in the long run. Here are some serious advantages to carrying Workers Compensation insurance for your employees.

Paying Out-of-Pocket

The most obvious advantage to insurance is if an employee is injured and they sue you. Without insurance, you may end up paying damages out-of-pocket if you lose the case.

Losing Defenses

When companies are sued by employees, there are some common defenses they use in court. For example, they can argue that the employee knew the hazards of a situation and volunteered to do it anyway. They may also argue that the injury was a result of the employees own negligence or the negligence of his co-workers. Without Workers Compensation insurance, you lose the right to use these defenses.

Doing Paperwork

If you don’t have insurance, workers compensation policy in Texas states that you have to report your no-coverage status to the Texas Department of Insurance Division of Workers Compensation. You also have to report every work-related injury or illness.

It may seem easier to skip Workers Compensation insurance, but there are many advantages in the long run. If one of your employees gets injured on the job, you’ll be grateful you have it.