If you suffer an injury at work and your employer does not carry workers’ compensation insurance, then you must go through the courts to seek damages. Going through the workers’ compensation system is often quicker and easier for you. However, many employers do not carry this insurance. If you know about how the system work, this may lead you to ask if Texas requires employers to carry the insurance like other states typically do.
According to the Texas Workforce Commission, the state does not require private employers to carry workers’ compensation insurance regardless of the size of the company or how many workers it employs. This is in opposition to other states where there is a general requirement based on the number of employees. You should know if your employer carries the insurance or not because of notification requirements.
When a company hires you, it must let you know about its coverage status. In addition, the employer must post signage that also explains whether it has coverage under workers’ compensation insurance. The notice must include information about your rights should you suffer an injury and the benefits you may not have if there is no workers’ compensation coverage.
If your employer did have coverage and then decides to drop coverage, then it must notify you of this action.
Having workers’ compensation insurance is usually beneficial to an employer because it provides them protection. If you suffer an injury, the system has limits in place to help manage the liability of the employer. If the employer does not have insurance, then there are no strict limits.