In Texas, employers are not required by law to carry workers’ compensation insurance.
Texas is unique in that it is the only state in the United States that does not require private employers to carry workers’ compensation insurance. While many employers do choose to carry this insurance, there are several reasons why some employers may not have work injury insurance or workers’ compensation:
- Cost: Workers’ compensation insurance can be expensive for employers, particularly for those in high-risk industries or those with a history of workplace injuries. Some smaller employers or those with limited budgets may choose not to carry this insurance due to the cost.
- Legal requirements: While employers in Texas with three or more employees are required by law to carry workers’ compensation insurance, some smaller employers may not be aware of this requirement or may believe that they are exempt.
- Risk assessment: Some employers may believe that the risk of workplace injuries is low or that their employees are unlikely to file a claim, and therefore may choose not to carry workers’ compensation insurance.
- Alternative insurance options: Some employers may choose to carry alternative insurance options, such as occupational accident insurance, which can provide some coverage for work-related injuries and illnesses.
It is important to note that while employers in Texas are not required to carry workers’ compensation insurance, they are still required to provide a safe work environment and to comply with state and federal laws regarding workplace safety, explains Texas Non-Subscriber Lawyer Hector Sandoval.
Injured employees still have the right to seek compensation for work-related injuries and illnesses, and may be able to pursue a personal injury claim against their employer in non-subscriber cases.
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In a non-subscriber case, an injured employee may be able to pursue a lawsuit against the employer to recover damages such as medical expenses, lost wages, pain and suffering, and other losses related to the injury. However, the employee would need to prove that the employer was negligent and that the negligence caused the injury.