Workers’ Compensation Insurance
When employees are injured or become ill on the job, there are medical bills and potential legal fees that may follow. Every business owner should strive to achieve an accident-free workplace, but that’s the thing about accidents, they aren’t intentional. You don’t live in a perfect world and when accidents do occur, it is important to be prepared to protect your business and help your employees during this time of need.
Workers’ comp, workman's comp…however you say it, a workers’ compensation policy is imperative for your business to help overcome on-the-job injuries. Texas is one of only two states that does not mandate businesses to carry workers’ compensation insurance. Failing to do so can put your business under serious scrutiny and suffering not only the loss of labor from an injured employee but also from expensive medical and legal bills.
Insurance is an investment that protects your company’s profits. In the case of workers’ comp, your policy is also much more. From a recruitment and retention tool to important protection and more, the right workers’ compensation policy will help you keep employees happy and protected while safeguarding your own interests.
How Workers’ Compensation Insurance Works
Your workers’ compensation insurance policy is a protection against employee injuries and lawsuits stemming from such incidents. When an employee is injured on the job due to an accident or becomes ill due to work activities, your policy is there to help pay for their medical bills, time off for recovery, and it can even cover legal expenses for lawsuits that may arise in the aftermath.
Workers’ Compensation Insurance Cost
The average cost of workers’ compensation insurance in Texas will vary due to a variety of factors. Some of these include the number of employees your business has, the nature of their work, your claims history, where your business is located, etc. A variable that is unique to workers’ compensation insurance, however, is one of the 700+ class codes from the National Council on Compensation Insurance (NCCI).
These codes are used to help classify the nature of work an employee will perform. Like other forms of insurance, your premium will be higher depending on the level of risk you pose as a client. Companies with less risk will likely pay less for protection. Every insurance brand will also have its own method of calculating your premium. Because of this and the variety of factors that go into creating your premium, you can expect your business to receive many different premiums. This is what makes comparison shopping so important to be sure that you are receiving the right coverage at the lowest cost for your business.
What Does Workers’ Compensation Insurance Cover?
Your workers’ compensation insurance will cover the following injuries according to the Insurance Information Institute (III):
- Injuries sustained from a workplace accident.
- Injuries from workplace violence.
- Injuries caused by terrorist attacks.
- Injuries developed due to natural disasters.
Of course, injuries aren’t the only thing covered by your policy. Illnesses are too. For many jobs, this will also include COVID-19. Defining how a workers’ compensation policy will protect against illnesses can be much more difficult, however, as the definition of which illnesses are covered can be different for different states. The best way to understand how your policy protects against illness-related claims is to speak with your insurance agent as these terms and conditions may vary.
Which Workers’ Compensation Insurance is Best?
The best workers’ compensation insurance company for your business is the one that can deliver the protection for you at the lowest cost. While obvious is obvious, it’s important to remember this fact rather than chasing popular brands. It is also important to consider the following:
- You’ll also want to be insured by a company capable of paying your claims on time and in full without any hiccups.
- Finding the right insurance provider will mean sifting through many different brands to compare rates and coverage options.
We understand that comparing rates among insurance companies takes a lot of time and effort, and for business owners, time is money. This is why here at Freedom Insurance Group, we do the hard work for you. By working with many top-rated insurance brands, we are able to ensure that you find the lowest price for your coverage from reputable insurance providers. Our partnerships with 25+ insurance carriers allow us to provide you a quote and create a custom coverage plan for your company in a fraction of the time as it would if you undertook the task alone.
Workers’ Compensation For Sole Proprietors
As a sole proprietor, you alone are responsible for maintaining your business. Many sole proprietorships operate with no employees other than their owner, you. If you are injured while working, this could mean a major loss for business and it can feel like a double whammy. Not only do you have to pay your personal expenses, but you’ll also have the hurdles of keeping your business afloat during these difficult times. Having a workers’ compensation policy can help you mitigate such losses and help you keep your business going while you heal.
Workers’ Compensation For Small Businesses
Small businesses often face many obstacles including sourcing labor, thin profit margins, and stiff competition. Overcoming the adversity that can come after an employee injury shouldn’t be added to that list. With workers’ comp, it doesn’t have to be. Your size may be small but the medical and legal expenses you can face after an employee is injured will be far from it. The right policy will help you stave off such costs.
Workers’ Compensation For Contractors and 1099 Employees
Having contractors perform work for your company is great for certain projects, but the risk of injury doesn’t disappear. Even though they may not be technically your employee, they can still take your company to court in search of compensation following an injury. If they can prove that they were injured while performing work on behalf of your business, contractors are entitled to benefits in the state of Texas. Though not all contractors may qualify, having a workers’ comp policy in place can help you save money and headaches involving such incidents from the beginning.
Workers’ Compensation Insurance vs. General Liability Insurance
Both workers’ compensation and general liability policies have their place protecting your company. The difference is that while both protect you from liability involving injuries, one is for your employees while the other will cover other parties:
- Workers’ compensation insurance protects your company against injuries involving employees and contractors.
- General liability insurance protects your business from injury-related liability losses involving other parties including customers, visitors, partners, vendors, etc.
Businesses have plenty of insurance options before them, and when suffering a loss, it is not uncommon for your company to be affected in multiple ways. An employee injury may require workers’ compensation, but it can also stem from an event that caused severe physical damage to your property and also interrupts your business. Policies aren’t blanket coverage and best work together by covering gaps you may otherwise have to overcome out-of-pocket. Take a closer look at some of the best business insurance options available that work in harmony with workers’ comp and general liability:
- Commercial property insurance protects your company from physical losses to your business.
- Business interruption insurance will help you overcome disruption to your business when caused by physical damage to your company.
- Business crime insurance is coverage against things such as theft and forgery.
- Commercial umbrella insurance is an extra layer of liability protection that covers legal and medical expenses when other forms of insurance have reached their policy limits.
No two businesses are the same, but protection is important for every industry. Assess the risks specific to your business and discuss your options with a licensed insurance agent to best determine how to stay protected.
Understanding COVID and Workers’ Comp in Texas
COVID-19 has changed many facets of our lives and the laws and regulations regarding workers’ comp are no different. In Texas, nurses and certain public safety officials may be able to submit a claim for workers’ comp related to COVID, but for other industries, things may not be as clear. To best understand your policy and what is covered, speak with your insurance agent to avoid coverage disputes.
Cheap Workers’ Compensation in Texas
Save money, attract talent, and protect your finances with a workers’ compensation insurance policy from Freedom Insurance Group. Our agents work to provide your business with the cheapest workers’ compensation coverage on the market without cutting your benefits. We compare your coverage among our insurance partners to deliver the best insurance products at the lowest rate on the market for your company. Avoid paying for on-the-job injuries out of pocket with workers’ compensation insurance. Get a free quote or contact us today!
Workers’ Compensation FAQs
You know your business, your industry, and all of the little things that it takes to deliver your product or service. Let us take care of understanding the insurance policies that protect your company. Freedom Insurance Group is proud to be a resource to business owners and we are here to answer any of your insurance-related questions. Should they occur, feel free to contact us at any time. Still, we also understand that some questions are more common than others. Speaking with an agent about your specific company can never be duplicated, however, this FAQ below is the perfect guide to get you started understanding some of the basics involving workers’ compensation insurance.
No, workers’ comp isn’t a requirement by law in Texas. According to the National Council on Compensation Insurance’s (NCCI) Workers Compensation Statistical Plan database, the average workers’ comp claim reaches right over $42,000. This figure balloons mightily to almost $82,000 when a vehicle accident is involved. Texan business owners can help protect their workers and their companies by investing in workers’ compensation coverage and avoiding paying costly liability expenses in the event of an accident.
There are many reasons that a workers’ compensation policy is important for your business:
- It protects you from rising expensive medical and legal expenses.
- Employees can gain peace of mind understanding they are protected in the event of an accident. Your policy can also help you retain talented employees.
- Future employees will look at this benefit as a positive while recruiting talent.
When job-related injuries occur, workers’ comp or not, your business may be responsible. Without the policy, you’ll pay out of pocket. Businesses with a policy, gain financial protection and trust among their workers.
Your business will pay the premiums for a workers’ comp policy. Employees do not pay for these premiums and it is considered part of your company’s payroll.