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
subdivisions, which may self-insure, buy coverage from insurance
companies, or enter into inter-local agreements with other political
subdivisions providing for self-insurance.
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.