Drawbacks of Not Enrolling in Workers’ Compensation

If you own a business, you are probably interested in what kind of insurance you will need to obtain. Some business owners choose not to enroll in TX workers’ compensation coverage. While a workers’ compensation policy is not technically required in Texas, it is still a good idea to have this coverage. You still have to report injuries and illnesses that occur on the job regardless of enrollment, and lack of coverage could cost you a significant amount of money should an accident happen.

You must register as a non-subscriber with the Texas Department of Insurance’s Division of Workers’ Compensation (TDI-DWC). You must also post signs at your workplace informing your employees that you are a non-subscriber. Even if you are not enrolled in TX workers’ compensation coverage, you must still report any work-related injury that results in anything exceeding a one-day absence, work-related illnesses or a death that occurs on the job.

Without workers’ compensation coverage, you are likely to be held automatically liable for any injury that occurs in the workplace. All legal fees and settlements will come directly out of your pocket if you are uninsured. Even one accident on the job can result in a massive blow to your business’s finances.

It may seem like you are saving money and effort by not enrolling in workers’ compensation. In the long run, however, such a policy could save you a significant amount of time and money.