Workman’s Compensation Insurance, also known as Workers’ Comp protects both the employee and the employer. It provides financial benefits and medical care to employees who have a work related injury or illness.
Employee Coverage
When a work-related injury or illness occurs workers’ comp insurance covers their medical expenses, rehabilitation costs, and lost wages during recovery. It may also provide benefits to the dependents of employees who die due to a work-related accident or illness.
Employer Protection
Worker’s compensation also shields employers from lawsuits filed by injured employees, as the system is typically “no-fault.” This means the employee does not need to prove the employer was at fault in order to receive benefits.
In exchange for the insurance, employees generally waive their right to sue the employer for negligence related to the injury.
Medical Benefits
Medical Benefits Covers the costs of medical treatment and care for the injured employee.
Disability Benefits
Disability Benefits if the employee is unable to work due to the injury, workers’ compensation can provide partial wage replacement.
Rehabilitation Benefits
Some work-related injuries or illnesses requires rehabilitation. A Workers’ Comp policy pays for physical therapy or retraining for new job skills.
Death Benefits
Death Benefits if the employee dies due to a work-related incident, the insurance may provide benefits to the surviving family members.
Legal Requirement
Texas does not require employers to carry workers’ compensation insurance. Higher amounts for injuries or illnesses may be the result for employers without workers’ comp.
Exclusions
Intentional self injury.
Injuries occurring while intoxicated.
Horseplay
Injuries occurring outside of work or while participating in off-duty sports or social event. For example the company’s softball team.
Acts of God.
For additional questions regarding Workmans Compensation reach out to Legacy Insurance or refer to the Workers’ compensation insurance guide on the Texas Department of Insurance website.