So you don't have Workers Comp?
It's true that you are not required by law to carry Workers Comp and Employers Liability coverage in Texas. Of course, you are not required to eat either, but that doesn't mean that it's not a wise decision.
So then the question becomes, "Do I really need to carry Workers Comp & Employer's Liability?" Well, if you have employees the answer lies in part B of the coverage called Employers Liability.
Employers Liability prevents an employee from suing an employer for on the job injuries or illness in most cases. This affords a great protection to an employer.
What are the risks of not having Employers liability?
If you as an employer don't have Employer's Liability coverage then you frankly have a huge exposure... Without this protection, you not only have the legal responsibility to provide medical and disability payments for an injured employee, but in Texas, if you do not subscribe to the workers comp system you also forego your right to use certain common law defenses that are normally allowed in negligence lawsuits.
But my employees work in an office!
OK, I hear you say that "my employees work in an office. If they get a paper cut, I can pay for them to go to the doctor, right?" This is true, but do you really know everything that can happen?
Do you ever have an employee run a business errand? Or drive to the bank to do a deposit or go to the office supply store in their own vehicle? What happens if they get in a serious at fault accident? Who pays for their medical and disability payments? You might think that your company's group health insurance would cover it. Rarely does group health provide coverage for on the job accidents. What about your business auto insurance? Nope. That's a 3rd party liability coverage and the PIP is typically limited to $2500. What about General Liability? No, sorry, that specifically excludes injuries to employees, but thanks for playing...
So who covers it? Hopefully your workers comp carrier and hopefully your workers comp carrier is not your balance sheet! Check into this important coverage today. Click here for a free quote.
So then the question becomes, "Do I really need to carry Workers Comp & Employer's Liability?" Well, if you have employees the answer lies in part B of the coverage called Employers Liability.
Employers Liability prevents an employee from suing an employer for on the job injuries or illness in most cases. This affords a great protection to an employer.
What are the risks of not having Employers liability?
If you as an employer don't have Employer's Liability coverage then you frankly have a huge exposure... Without this protection, you not only have the legal responsibility to provide medical and disability payments for an injured employee, but in Texas, if you do not subscribe to the workers comp system you also forego your right to use certain common law defenses that are normally allowed in negligence lawsuits.
But my employees work in an office!
OK, I hear you say that "my employees work in an office. If they get a paper cut, I can pay for them to go to the doctor, right?" This is true, but do you really know everything that can happen?
Do you ever have an employee run a business errand? Or drive to the bank to do a deposit or go to the office supply store in their own vehicle? What happens if they get in a serious at fault accident? Who pays for their medical and disability payments? You might think that your company's group health insurance would cover it. Rarely does group health provide coverage for on the job accidents. What about your business auto insurance? Nope. That's a 3rd party liability coverage and the PIP is typically limited to $2500. What about General Liability? No, sorry, that specifically excludes injuries to employees, but thanks for playing...
So who covers it? Hopefully your workers comp carrier and hopefully your workers comp carrier is not your balance sheet! Check into this important coverage today. Click here for a free quote.
__________________________________
Chris J. Baumli
Certified Insurance Counselor
Austin, Texas
Labels: Austin, Car Insurance, Chris Baumli Austin, employers liability, workers comp
