If one of your employees gets hurt on the job, you might have to repay them using workers’ compensation. This is extremely valuable coverage. In fact, workers’ comp is one of the most important types of protection a business in Texas can carry. Why is this? How does it work?

Workers’ Comp—It’s the Law

Many businesses have no choice in whether to carry workers’ compensation insurance. Most states require businesses over a certain size to offer this protection. Generally, if you have more than one full-time employee, you have to have a policy in place. You also have to make it known to employees that they can access this coverage.

In Texas, most private businesses do not have to carry workers’ compensation outright. However, the state does require public entities and businesses that contract with the government to carry coverage. However, just because a requirement doesn’t exist, that doesn’t mean you shouldn’t have protection.

Coverage Equals Commercial Security

By investing in workers’ comp, you’ll do your company a favor. Though the money might directly go to an employee, it still translates back to the business.

• With coverage, you usually won’t have to pay out of pocket to compensate the affected employee. Instead, your coverage can pay. That's its purpose, after all. By letting coverage pay, you won’t put the business in a financial bind. Even if you have the assets to repay a harmed employee, you won’t have to dig into money you might be able to use elsewhere.
• Employees often can better leverage the funds to see to their own needs. So, theoretically, they can potentially return to work in a better position. Healthy, secure employees are often more satisfied, and better able to produce. Overall, that will keep the company in better operational shape. It’s a winning situation for both parties.

Your Policy offers Legal Protection

Sometimes, by providing workers’ compensation, you can free yourself from legal liabilities. Sometimes, employees who take coverage surrender their right to sue over the injuries.

In other words, this coverage allows you to compensate employees. Therefore, they can’t sue you for compensation you have already provided. Both parties can enjoy this regulation by avoiding costly legal processes. Still, don’t forget that other situations exist where lawsuits can result even with workers’ comp in place. Talk to your insurance agent about the regulations surrounding your coverage.

We can’t understate how important it is for Texas businesses to carry workers’ comp insurance. If you are ready to get covered, contact us today at 888-296-0345. We’ll help you put the most appropriate policy in place.

Also Read: What is a Safety Program and Why Does It Save You Money?