orkers compensation insurance costs continue to be a major concern for many business owners as they scramble to try and find ways to reduce costs while still properly protecting their employees. Businesses continue to pay more in premiums, while in some cases their payrolls may have diminished, while others cite a lack of any substantial business growth.
Many employers in the Lone Star State agree that cost containment is a huge worker compensation concern, followed by increased exposures and the rise in fraudulent claims. Texas employers have an option when it comes to choosing whether or not to maintain workers’ compensation insurance.
Those who do carry coverage will generally purchase it through a Texas workers compensation agent or they may opt to self-insure, provided they meet the requirements of the Texas Workers Compensation Act.
Injuries and illnesses must occur while on-the-job
In order for employees to be covered under any workers’ compensation law, the injury must happen during the course of employment. This simply means that the injured employee must be on the job at the time that the accident occurs. Any accident suffered while traveling to and from work, with few exceptions, will not be covered by the employer’s insurance.
Some companies cite that they are finding it difficult to secure a viable workers comp program and try to secure alternative solutions. The trick is to find agencies that partner with several carriers, choosing one that can offer a number of workers compensation plans to address any individual needs. Every business has its own requirements based on the line of work they’re in and the number of workers they employ.
With a guaranteed cost program, premiums are based on payroll, specific classification codes and premium rates per $100 of payroll. The insured pays a standard amount of premium even if losses exceed that amount. Clients having a low experience modification factor equates to lower premiums.
Large deductible programs, often popular with larger companies, are individually designed and filed by insurers. An employer can benefit from a significant cash flow advantage over many fully insured or alternative risk programs, along with increased market availability and incentives for implementing loss control programs and return to work programs, as well as safety programs aimed at reducing workplace injuries.
A Texas workers compensation agent can help companies dealing with the difficulties surrounding claims for injured workers. Speak to a reputable agent today.