Workers’ compensation addresses medical bills and wage losses following an employee’s workplace injuries. Reimbursements are offered when the injury results in income losses for more than one week. While most states legally require employers to have workers’ compensation insurance, Texas is an exception in most cases.
Although Texas does not require most employers to provide employees with coverage, many do. Providing coverage protects business owners from paying workers’ expenses from on-the-job injuries. It also protects employers from getting sued and being responsible for the costs of the employee’s medical needs and wages lost due to their injuries or illnesses.
It is assumed that Texas follows the same workers’ comp insurance coverage protocols as other states, but this is not entirely true. Below, we discuss additional myths about workers’ comp in Texas. Read on to learn what is really required under Texas workmans comp insurance and the common five myths surrounding it, or you can find more here https://cerity.com/texas-workers-comp/.
1: There are penalties for employers exempt from providing Texas workmans comp insurance.
Texas has no penalties for exempt employers without workmans comp insurance. Since there are no legal requirements to provide workers’ comp coverage for these employees, penalties for not providing it do not exist. In other states, lack of employee coverage can result in steep fines and jail time, so it is a common myth that Texas also follows these legal policies.
2: There are no financial risks since no insurance coverage is required.
Even though employers are not required to provide Texas workmans comp insurance, that doesn’t mean they are exempt from associated financial liabilities. Not having coverage increases employers’ likelihood of being held responsible for medical and wage-related employee repayments.
3: Employers working for the government do not need workers’ comp.
It is assumed that because workers’ comp is not typically required in Texas, this extends to government workers. This is not true, as this is an exception where Texas workmans comp insurance is required. Texas employers working directly for the U.S. government must have workers’ comp coverage.
4: You can only file your claim if you report your work injury within the state’s established period.
You can still file your claim even if you’re past the reporting deadline, though getting your claim approved may be more challenging. States have different deadlines for late claims. In Texas, you have up to a year to file your claim.
5: There are no employer exclusions other than government workers for mandatory employee insurance coverage in Texas.
There are additional exclusions to the rule that employers are not required to have Texas workmans comp insurance. These exclusions include public and state employers, contractors for employers working for the public, motor bus businesses, gas dealers, and inmate work furlough programs.
Know your state-funded insurance guidelines.
If you are an employee or employer in Texas, it is imperative to understand the laws and benefits that apply to Texas workmans comp insurance coverage. By understanding these guidelines, you can support yourself as a worker or employer.
