Q. Am I required to carry workers’ compensation insurance? I have an airplane maintenance company and my employees are telling me that I must. Is this true?
A: Generally, no. Texas employers, except for public entities, can choose whether or not to provide workers’ compensation insurance coverage for their employees. As you may be aware, workers’ compensation provides covered employees with income and medical benefits if they are injured on the job or have a work related injury or illness. The Texas Department of Insurance regulates Workers’ compensation. Participation in the workers’ compensation system in Texas is voluntary for most employers.
Employers who choose to have workers’ compensation insurance may: • purchase a workers’ compensation insurance policy from a private insurance company; • self-insure, if the employer can meet the requirements to self-insure under the Texas Workers’ Compensation Act (the Act) and is certified through the Division; • self-insure through the Texas Department of Insurance with a group of same or similar private employers; or • if a governmental entity, purchase a workers’ compensation policy from a private insurance company, or self-insure either individually or as a group. With few exceptions, workers’ compensation insurance limits the employer’s liability for the work-related injury or death sustained by the employee.
You may want to visit with an attorney to determine if your type of business and claims history as well as cost necessitates workers’ compensation insurance.
Q. My employer is requiring that I sign a workers’ compensation waiver? Is this legal?
A: No. Any waiver of workers’ compensation coverage is prohibited by law and is void. An employer is not required to subscribe to workers’ compensation insurance but once the employer elects to do so, they may not require an employee not to make a claim. The nature of the program provides benefits to an injured employee within specified limits in exchange for waiving common law rights for unlimited recovery if negligence is proven.
Editor's note: The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
