Worker’s Compensation Insurance
Workers Compensation Insurance is protection for the employer from the medical expenses and potential lawsuit if a worker is injured while at work. Start a free quote now!
A Worker’s Compensation policy has two components:
- Worker’s Compensation benefits per Texas State Law and Employer’s Liability. The Worker’s Compensation policy shifts the cost of a hurt employee’s medical bills, rehabilitation expenses and lost wages to the insurer. The benefit levels and procedures are all setup under the Texas statute.
- The Employer’s Liability coverage is available to protect the employer in the unlikely event that a lawsuit skirts the Worker’s Compensation statute
A Worker’s Compensation insurance contract is rated based on payroll dollars and type of job the worker is performing.
Worker’s Compensation insurance protection is optional in Texas. See our essay: Why Work Comp?.
Who is an “employee” for Worker’s Compensation purposes? Generally, anyone that you are exercising management direction or control over is considered an employee for Worker’s Compensation purposes regardless of the payment arrangements. To be considered an “independent contractor,” besides being self-employed for tax purposes, the person would not be subject to an employer’s direction and control. An independent contractor is hired to do a specific job, handles how and when the job is accomplished and then is paid for the completed job.