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

Contact Info
  • 10011 West Gulf Bank
    Houston, TX 77040
  • Phone (888) 296-1380
    Fax (713) 690-6020
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Workers Compensation Insurance

Who Is In the Workers Compensation System?

Texas law does not require most private employers to carry workers compensation insurance. However, private employers that contract with governmental entities are required to provide Workers Compensation coverage for each employee working on the public project. In addition, some clients may require their contractors to have workers compensation insurance. The following employers are considered part of the states Workers Compensation system:

  • Employers covered by Workers Compensation policies issued by insurance companies licensed to write this type of coverage in Texas
  • Employers certified by the Division of Workers Compensation to self-insure their Workers Compensation claims
  • Employers that are part of a self-insurance group that has received a certificate of approval from TDI
  • Political subdivisions, which may self-insure, buy coverage from insurance companies, or enter into inter-local agreements with other political subdivisions providing for self-insurance.

Employers without Workers Compensation face unlimited liability, including possible punitive damages, if they lose lawsuits arising from workplace accidents. They also lose certain common-law defenses if they are sued over on-the-job injuries. They may not defend themselves by arguing that

  • The injured workers negligence caused the injury
  • The negligence of fellow employees caused the injury
  • The injured worker knew of the danger and voluntarily accepted it.

Employee injury cases are more likely to become lawsuits if an employer does not carry Workers Compensation insurance. If an employer carries Workers Compensation, a case may go to court only after the Division of Workers Compensations administrative dispute process has been exhausted. If the claim goes to court, the divisions recommendations must be presented, and evidence is limited to the issues in dispute. Resolved issues cannot be reintroduced. The employers insurance company is responsible for attorneys" fees and other defense costs.


Information courtesy of The Texas Department of Insurance
333 Guadalupe, Austin 78701 • P.O. Box 149104, Austin 78714-9104