Texas doesn’t require most private employers to carry workers’ compensation insurance, but going without it carries considerable risk.

When an employee is injured on the job or develops a work-related illness, workers’ comp may help pay for medical treatment, a portion of lost wages and rehabilitation costs. The coverage protects both the employee and the business from the cost of a workplace injury claim.

What Workers’ Compensation Covers

A standard workers’ compensation policy typically includes coverage for:

• Medical expenses—May help cover costs related to a job-site injury or occupational illness
• Lost wages—May help replace a portion of wages while an injured employee recovers
• Rehabilitation—May help cover rehabilitation and physical therapy costs
• Death benefits—May help pay benefits to the families of workers killed in a work-related accident
• Employer liability coverage—May help cover the employer if a lawsuit related to the injury is filed

Who Needs This Coverage

Coverage requirements vary by state, including the number of employees that triggers mandatory coverage and which industries are exempt.

Businesses not legally required to carry workers’ compensation still face significant financial exposure without it. A claim can involve ongoing medical care, extended lost wages and legal costs.

How Premiums Are Calculated

Workers’ compensation premiums are based on your industry classification, payroll size and claims history. Higher-risk industries such as construction and manufacturing typically carry higher rates than office-based businesses.

A clean safety record can help keep premiums manageable over time.

Getting the Right Policy

Coverage limits, exclusions and carrier options vary widely. Reviewing your workforce and risk profile against those options helps you match coverage to what your business needs.

Contact AAAA Insurance today to review your workers’ compensation coverage options so your business and employees have the coverage they need.