Workers Compensation Insurance Humble, TX
When an accident happens at work or an illness can be traced back to working conditions, business owners are usually liable to pay for the damages.
Given that the average cost of an incident ranges between $30,000 and $80,000 (and could easily climb into six and seven-figure territory), having workers compensation insurance can reduce the impact of this financial liability.
What is Workers Compensation Insurance, and Is It Required?
Workers compensation insurance is a type of insurance carried by companies that provide benefits to employees who become sick or injured on the job. It also includes work-related injuries and diseases that occur during the “scope” of employment. This means that even if the accident or illness didn’t happen onsite, it could still be covered by workers compensation insurance.
In addition to illnesses and injuries, fatal accidents and diseases are also covered by workers comp, resulting in death benefits for surviving family members.
Most states require that employers carry workers compensation insurance, though there may be different mandates based on the number of employees on the payroll. Texas is an exception to this rule, however.
In Texas, workers compensation insurance is not required for private employers, with one notable exception. If a private employer contracts with a government entity to provide products or services, the company must provide workers comp to the employees associated with the project.
Even though workers compensation insurance isn’t a legal requirement for most Texas companies, it is still important to have this layer of protection. Accidents happen, and they can be expensive. Without workers compensation insurance, your company could be liable for injuries, even if the employee was technically at fault.
Instead of having an insurance company negotiate on your behalf, you will likely end up in court, where the outcome is unpredictable, the legal fees are high, and the judgments can skyrocket.
The following situations could leave you on the hook for footing the entire balance of lost wages, medical bills, retraining, and more:
- The employee’s negligence caused their injury
- Another employee caused the injury through their own negligence
- The injured employee knowingly and voluntarily took on a risk that caused their injury
As you can see, even if you did everything right as an employer, you could still end up with an expensive bill through no fault of your own. Workers compensation insurance protects you against this risk.
What Does Workers Comp Insurance Cover?
Workers compensation covers a range of expenses linked to a workplace injury or accident, including:
- Lost wages
- Medical bills
- Ongoing care
- Disability benefits
- Rehabilitation benefits
- Re-education and training
- Funeral expenses (if the incident resulted in death)
Workers compensation doesn’t cover everything, meaning that if the injury or illness does not fall under the workers comp insurance umbrella, your company is not liable for paying the employee.
Injuries that are typically not covered by workers comp include:
- Injuries resulting from employee drug use or intoxication
- Injuries intentionally caused or inflicted
- Injuries that occur outside of the scope of employment (for example: commuting)
- Injuries that occur as a result of a well-documented or posted company policy
When you have workers comp, the insurance companies will do an investigation to determine if the injury is covered by insurance. If it’s not, your insurance company will argue and negotiate on your behalf.
If you don’t have workers compensation insurance, however, you would have to seek representation to argue that the employee caused the accident. This could result in extra steps for mediation, arbitration, court appearances, and/or expensive settlements.
Speak with an Insurance Agent Today
Not having workers comp insurance exposes you to unnecessary risks that can make your company financially vulnerable to expensive claims and lawsuits. Even a relatively benign condition like carpal tunnel syndrome from a typist who gets injured as a result of repetitive use can lead to a claim that could be easily settled by worker’s compensation.
At Lee Insurance Agency, we can create a custom workers comp insurance plan for companies in Humble, Texas, and the surrounding area, designed to meet your unique needs and protect your company’s interests.
Contact our business insurance specialists today at 281-812-8400 for a FREE quote.