TX workers’ compensation coverage
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What Happens If Your Business Doesn’t Have Workers’ Compensation Insurance?

As a Texas business owner, you have the option to waive workers’ compensation insurance. Legally, you may not have to carry this coverage. However, making this decision can put your business at serious financial risk. It’s important to understand what happens if your business fails to purchase TX workers’ compensation coverage.

Open to Lawsuits

First and foremost, TX workers’ compensation coverage is designed to protect your company’s finances if an employee is injured at work. That employee can bring about a lawsuit that aims to prove that you are at fault for the accident. The legal fees to defend your company can be expensive, and you could also end up paying out a settlement or a fine.

Even if you do everything perfectly, you can still end up paying to defend your business against lawsuits. In this litigious society, someone could file a baseless lawsuit. Even if these is no reason for their claim, you may be stuck paying lawyers big money to defend yourself from the suit.

Report to Texas Department of Insurance

If you choose not to carry TX workers’ compensation coverage, you must report your status to the Texas Department of Insurance. Furthermore, you may need to report any injuries or occupation-related diseases to the TDI. This can be a huge hassle that you can avoid by purchasing workers’ compensation coverage.

Henry Henrynms (Author)