Workers' Compensation
                                      Insurance 

What is Workers' Compensation?

Workers' compensation laws provide money and medical benefits to an employee who has an injury as a result of an accident, injury or occupational disease on-the-job. Workers' compensation is designed to protect workers and their dependents against the hardships from injury or death arising out of the work environment. It is intended to benefit the employee and employer alike. The employee receives money ( usually on a weekly or biweekly basis ) and medical benefits in exchange for forfeiting the common law right to sue the employer. The employer benefits by receiving immunity from court actions against them by the employee in exchange for accepting liability that is limited and determined. The question of negligence or fault is usually not at issue.

Did you know that an employer can choose a certified workers' compensation health care network?

Employers may provide workers' compensation coverage for their employees by participating in workers' compensation health care networks certified by TDI. These networks provide cost-effective care for work-related injuries and illnesses. Because the networks specialize in treating injured workers, they also can help workers return to the job quickly and safely. Employers premiums may also be less if they participate in a network.

Providing Workers' Compensation 

Texas does not require most private employers to carry workers' compensation insurance. Private employers that contract with governmental entities are required to provide workers' compensation coverage for each employee working on the public project. in addition, some clients may require their contractors to have workers' compensation insurance. 
    
Employers who choose not to have workers' compensation insurance must file an annual notice of no coverage with TDI; prominently display notices of non-coverage in the personnel office and throughout the workplace; and give a written statement of non-coverage to each new employee when hired.

Covered Employers Have Some Important Legal Protections

Covered employers have immunity from most lawsuits by injured workers. If an employer has workers' compensation, a lawsuit may go to court only after TDI's administrative dispute process has been exhausted. In addition, TDI's recommendations must be presented to the court, evidence is limited to the issues in dispute, and resolved issues cannot be reintroduced. The employer's insurance company pays attorneys' fees and other defense costs.

Employers must provide workers' compensation coverage to their employees in one of the following ways: 

• purchase a workers' compensation insurance policy from an insurance company licensed by TDI to write this type of coverage in Texas  
• be certified by TDI to self-insure their workers' compensation claims
• join a self-insurance group that has received a certificate of approval from TDI
• be a political subdivision, which may-self insure, buy coverage from insurance companies, or enter into inter-local agreements with other political subdivisions that self-insure. 
  

Employers Without Workers' Compensation 

They may be forced to pay punitive damages if they lose injury lawsuits. They may not defend themselves in court by arguing that:

• the injured worker's negligence caused the injury
• the negligence of fellow employee caused the injury

 
    Workers' Compensation Cost Containment

    Many things can be done to reduce the cost of workers' compensation. While many business owners and managers
    initially think "workers' compensation is the cost of doing business," this is not really true and there are many controls
    that can be put in place inside a company to make sure an employer pays only for legitimate injuries, from the time
    an employee is medically unable to return to any productive task at the workplace.

    This field of risk management is a specialized niche called "post less cost containment," "injury management cost 
    reduction," and several other names. The specialty centers around actions an employer can do to "manage" the 
    processes in the workplace immediately after an injury occurs. There are four stages to the workers' compensation cost 
    containment process including: assessment and recommendations, design and development, implementation and rollout.

Shopping For Workers' Compensation Insurance

Employers should shop around to find the best rate before buying coverage, that's what Hartnett & Company does for you at no cost. The Texas Workers' Compensation Insurance Rate Guide shows relativities adopted by the Commissioner of Insurance, each insurance company's filed rate level, schedule rating information, and company contact information. 
  
 It's also important to buy from companies licensed to write workers' compensation in Texas. These companies are covered by the Texas Property and Casuality Guaranty Association, which pays claims for insurers who become insolvent and are unable to pay their claims. Claims against unlicensed insurers could go unpaid if the insurer becomes insolvent. You can learn whether a company is licensed by calling TDI's Consumer Help Line or viewing company profiles on the TDI website.   

 


                                                    Hartnett & Company -
        always working to find you the right solution for your company.