| Texas is the only state in our great union that | | | | be aware of if you choose to go without workers |
| doesn't require employers in some form to carry | | | | comp coverage (this is called non-subscription). If |
| workers comp coverage. Is this good news? | | | | you are a non-subscriber, then you are by law |
| I run across many Texas businesses that choose | | | | required to file a "Form 5" with Texas |
| to go bare. I hear things like, "Hey, my employees | | | | Department of Insurance every year. Failure to |
| work in an office, what's going to happen? If | | | | do so carries potential administrative penalties and |
| someone gets a vicious paper cut, I can write a | | | | fines. You can get a copy of a form 5 on the TDI |
| check to the urgent care center. Problem solved, | | | | website, or get in touch with me at Austin |
| right?" | | | | Insurance and I'll be happy to send you one. |
| Educate Yourself on the Risks | | | | The Realistic Risk |
| Maybe. As long as you are comfortable with the | | | | Perhaps the most realistic exposure to |
| risks. What else can happen to your office | | | | non-subscription is the cost of being sued by an |
| employees? Do they ever drive their own | | | | employee for on the job injuries. Even if you are |
| vehicles for business purposes? Ever drive to the | | | | vindicated in court, you will still incur potentially |
| bank to do a deposit or make a run to Office | | | | substantial legal fees. Now my attorney is a nice |
| Depot? Ever go on a sales call? (I know after last | | | | guy, but at $300 an hour I tend to forgo the chit |
| quarter's numbers you sometimes wonder, huh)? | | | | chat. |
| What happens if your employee gets in an | | | | Furthermore if you are sued by an employee for |
| at-fault accident and sustains serious injuries? Who | | | | negligence, then you are severely hamstrung in |
| pays for hospital stays, medications and lost | | | | any legal defense you employ because your |
| wages if you don't have Workers Comp? Well | | | | attorney will not be able to use many common |
| let's see: | | | | law defenses that are typically critical in defending |
| Health insurance? Nope. Automobile insurance? No | | | | negligence suits. |
| again. General Liability Insurance? Excluded. You | | | | The Solution |
| guessed it. You do! | | | | I'm sure this comes as no surprise, but yes, |
| A Risk Management Axiom | | | | Workers Comp Insurance in Texas is a critical |
| There is a risk management axiom that you | | | | component of any viable business insurance |
| should only retain the level of risk you can pay | | | | program. Having part B of workers comp |
| for. To throw in a little perspective on medical | | | | coverage in place, (called Employer's Liability) in |
| expenses, one of my ten year old twins recently | | | | place prevents these lawsuits from happening |
| had a little ER visit for doing a head-gravity-ground | | | | because it is the sole remedy in all but a very |
| experiment while playing "touch" football. We were | | | | few cases. |
| there for an hour and a half. The bill... Over | | | | The good news is that the level of workers comp |
| $16,000! How much for a serious auto accident? | | | | fraud has diminished over the last few years and |
| Hundreds of thousands of dollars? More? Can you | | | | rates have come down. In fact for office |
| write a check for that? | | | | workers annual rates are as low as 25 cents per |
| Statutory Compliance | | | | $100 of payroll. Make sure you are protected! |
| There are a couple of other issues you need to | | | | |