Workers Compensation Vs Alternatives?
Is Your Business Covered Against Workplace Injury Claims?
So-called "alternative" policies and coverage bought from unlicensed insurers do not count as Workers Compensation insurance under Texas law. Alternative accident and health policies covering employees both on and off the job provide some medical coverage, but they are not considered an equivalent to Workers Compensation coverage.
Common Problems with "Alternative" Insurance Policies
- Alternative accident and health policies contain dollar limits and time limits. If expenses exceed the limit, the employer may be responsible for the excess. Workers Compensation policies cover all related medical expenses even if an expense occurs years after the accident.
- Alternative health and accident policies contain limits on lost-income benefits. Again, if the employee’s expenses exceed policy limits, the employer may be responsible.
- The injured worker may still be able to sue the employer for damages even if a claim is covered under an alternative health and accident policy.