Why Do Businesses Opt Out of Workers’ Comp?

In Texas, a business has the option to decline taking part in the Texas workers’ compensation system. When a company opts out, they are called non-subscribers. About 40 percent of Texas businesses do not subscribe for workers’ comp insurance.

Why Do Businesses Choose to Be a Non-Subscriber?

Many businesses decided to go without workers’ compensation coverage to reduce costs, have more financial flexibility, to hire more workers or just because they may struggle to survive if they carry it. Some businesses, however, will create their own healthcare plans.

Despite these benefits for the business, not carrying workers’ compensation can have some serious drawbacks for both the injured or sick worker and the company if a worker is seriously hurt on the job.

What Happens If I Am Injured While Working for a Non-Subscribing Company?

The company you work for is extremely vulnerable if you are injured and it does not carry insurance. For instance, in a non-subscriber workplace injury case, you would have the right to sue your employer for damages to pay for your hospital bills, rehabilitation expenses and lost wages.

Texas law also requires that you need only to prove that your injury was at least 1 percent the fault of your employer. That most likely will not be difficult to prove, especially if you have a personal injury attorney.

Only some attorneys are equipped with the knowledge and experience to handle non-subscriber injury cases. Therefore, you want to make sure you select the proper lawyer so that you can afford the medical aid that you deserve.

[Did You Know? Texas’s first workers’ compensation law was enacted in 1913.]

The Law Offices of Aaron Allison – Austin Personal Injury Attorney