Subscribe or not to Subscribe (Texas WC)

In Texas, employers have the option to become non-subscribers to workers’ compensation insurance. This means that they do not carry workers’ compensation insurance and instead handle workplace injuries and illnesses on their own. If an employer elects to be a non-subscriber, they must meet certain requirements, such as posting a notice of non-subscription and providing employees with information about their rights and options in the event of a workplace injury.

If an employee is injured while working for a non-subscribing employer, they may still be able to receive benefits, but they will need to pursue a claim through the civil court system rather than through the workers’ compensation system. It is important for employees of non-subscribing employers to understand their rights and options in the event of a workplace injury.

The decision of whether to subscribe or non-subscribe to workers’ compensation insurance in Texas is a complex one that depends on a variety of factors, including the size and type of your business, the risks inherent in your industry, and your financial resources. Some of the pros and cons of subscribing and non-subscribing to workers’ compensation insurance in Texas are outlined below:

Pros of subscribing to workers’ compensation insurance:

• Provides medical and income benefits to employees who are injured on the job, which can help with employee retention and morale
• Protects employers from liability for workplace injuries, which can save time and money that might otherwise be spent on legal fees
• May be required by law, depending on the size and type of your business

Pros of non-subscribing to workers’ compensation insurance:

• May be less expensive than subscribing to workers’ compensation insurance, depending on the size and risk profile of your business
• Allows employers to customize their injury and illness policies to fit their specific needs
• Employers may have more control over the claims process and may be able to resolve claims more quickly

Cons of subscribing to workers’ compensation insurance:

• Can be expensive, especially for businesses in high-risk industries or with a history of workplace injuries
• May be difficult to change carriers or negotiate lower premiums
• May require the use of a managed care organization to handle claims, which can be administratively burdensome

Cons of non-subscribing to workers’ compensation insurance:

• Employers are responsible for paying for all medical and other costs related to workplace injuries, which can be expensive
• Employers may be sued by employees for injuries that occur on the job
• May be more time-consuming and administratively burdensome to handle claims through the civil court system rather than through the workers’ compensation system

It is important to carefully consider the pros and cons of subscribing and non-subscribing to workers’ compensation insurance in Texas and to consult with a qualified insurance agent or attorney before making a decision.