HERE’S WHAT YOU NEED TO KNOW ABOUT WORKERS COMPENSATION INSURANCE…
Texas is the only state in which an employer can decide whether to purchase workers compensation or not. With recent workers compensation reform and drastic price reduction in Texas, workers compensation protection far outweighs the risks for most Texas employers.
The $1,000,000 limit that you see on your workers compensation policy has nothing to do with medical or indemnity payments. The $1,000,000 is a limit for employers liability which is coverage for claims in which an employer may be held legally obligated to pay but is not covered under the workers compensation law.
It is possible to protect your experience modifier. NCCI continues to make changes to expected losses that are out of our control. By establishing a threshold for “notice only” or “report only” claims, your business can drastically reduce your experience modifier over time. Another claims cost saver is a quality return to work program getting injured workers back quicker and off of the insurance company payroll.
Make sure you are getting all of the discounts and the scheduled credits you deserve. A good agent would never accept the first workers compensation quote they receive from the carrier. There is always another discount for a health care network, safe working environment, formal safety program, return to work program or even a dividend at the end of the year.