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Cravens Warren

Serving the risk management and commercial insurance needs of business. Cravens Warren, founded in 1946, has been serving the insurance needs of... read more

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  • 10011 West Gulf Bank
    Houston, TX 77040
  • Phone (713) 690-6000
    Fax (713) 690-6020
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Workers Compensation Insurance

Section 408.001 - Texas Labor Code

We have included the actual text of Section 408.001 of the Texas Labor Code which applies to an employer that has workers compensation insurance coverage. The provision allows the subscribing employers to generally escape liability for claims of negligence by worker injured during the course and scope of their employment. This is a major benefit to employers in dramatically reducing their exposure for damages related to on-the-job injuries. The following is a resource for our clients.

   (a) After an injury, an employer may:
        (1)  initiate benefit payments, including medical benefits;  or            
        (2)  on the written request or agreement of the
employee, supplement income benefits paid by the insurance carrier
by an amount that does not exceed the amount computed by subtracting
the amount of the income benefit payments from the employee's net
preinjury wages.
    (b)  If an injury is found to be compensable and an insurance
carrier initiates compensation, the insurance carrier shall
reimburse the employer for the amount of benefits paid by the
employer to which the employee was entitled under this subtitle. 
Payments that are not reimbursed or reimbursable under this section
may be reimbursed under Section 408.127.
    (c)  The employer shall notify the division and the insurance
carrier on forms prescribed by the commissioner of the initiation
of and amount of payments made under this section.
    (d)  Employer payments made under this section:                               
        (1)  may not be construed as an admission of compensability;  and          
        (2)  do not affect the payment of benefits from another source.            
    (e)  If an employer does not notify the insurance carrier of
the injury in compliance with Section 409.005, the employer waives
the right to reimbursement under this section.
    (f)  Salary continuation payments made by an employer for an
employee's disability resulting from a compensable injury shall be
considered payment of income benefits for the purpose of
determining the accrual date of any subsequent income benefits
under this subtitle.
    (g)  If an employer is subject to a contractual obligation
with an employee or group of employees, such as a collective
bargaining agreement or a written agreement or policy, under which
the employer is required to make salary continuation payments, the
employer is not eligible for reimbursement under this section for
those payments.
    (h)  Payments made as salary continuation or salary
supplementation do not affect the exclusive remedy provisions of
Section 408.001.

Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.  Amended
by Acts 1999, 76th Leg., ch. 954, § 5, eff. Sept. 1, 1999;  Acts
1999, 76th Leg., ch. 1003, § 1, 2, eff. Sept. 1, 1999;  Acts 2005,
79th Leg., ch. 265, § 3.078, eff. Sept. 1, 2005.