Did You Know? TEXAS is the Single Work Comp Opt Out State

Don’t Tempt Fate:  Buy a Workers’workers’ compensation wage-replacement
Comp Policybenefits are not taxable.  OCC/ACC benefits are.
Thousands of Texas employers and theirSome employers think OCC/ACC policies are a
employees operate without an important safetygood option for typical workplace injuries. But
net. Texas is the only state allowing privatewhat about non-typical injuries?  Consider an
employers to opt out of the workers’OCC/ACC policy with a $1 million coverage limit.
compensation system. And, according to theThat’s probably enough to cover the average
Texas Department of Insurance, about one-thirdslip, trip and fall injury. Quadriplegics, paraplegics
are “non-subscribers” These employersand other seriously injured workers, however,
think they have found a cheap substitute forcould blow through that $1 million in a hurry. You
workers’ compensation in the form ofcould be on the hook for their remaining medical
occupational accident (OCC/ACC) policies.bills, with the potential of approaching the $10
The National Federation of Independent Businessmillion mark. If the accident involves more than
Texas, (NFIB), specializing in protecting theone employee, you’ll reach the $1 million limit
interests of the state’s small-business ownerseven faster.
for many years, does not advise our membersYou might reduce your premiums by choosing an
to choose an OCC/ACC policy over aOCC/ACC policy over a workers’
workers’ compensation policy. The risk iscompensation policy, but consider this:  Will you
simply too high.have enough money in your budget to cover a
Under Texas law, workers’ compensationcatastrophic injury you can’t possibly
benefits are the injured worker’s sole sourceforesee?
of recovery from an employer who carriesOf course, in business, the bottom line is the
workers’ compensation coverage. Thatbottom line. Fortunately, Texas workers’
means that in most cases, injured workerscomp rates fell 30% between 2003 and 2008,
cannot sue their employer for pain and sufferingaccording to the Texas Department of Insurance.
damages resulting from workplace injuries.Some carriers offer the opportunity for
Nonsubscribers do not have the same legalemployers to further lower their premium by
protection, leaving them vulnerable to potentiallyjoining a group discount program and enrolling in a
costly jury verdicts.workers’ compensation health care network.
In 2006, a Houston construction worker fell 20(workersxzcompxzkit)    
feet from a roof and was paralyzed. He sued hisBy and large, Texas workplaces are safe. Private
employer, claiming the employer did not provideemployers reported 69,320 nonfatal occupational
fall protection equipment or safety training. In Julyinjuries and illnesses involving days away from
2009, a Harris County district court issued a $20work in 2007, according to the U.S. Bureau of
million verdict in favor of the worker.  An OCCLabor Statistics. That’s a 4.6% decrease
ACC policy would have provided minimal coveragefrom the 72,660 reported cases in 2006.  Still, no
in this situation.  The verdict would have beenone can predict when a workplace injury will
unlikely for an employer with a workers’happen or how much it will cost. Workers’
compensation policy.  For information on laws incompensation insurance provides a measure of
your stateprotection that can help ensure a business stays
Setting aside he potential for losing a large lawsuit,in business.
workers’ compensation insurance also takesDo not use this information without independent
care of your employees if they are injured on theverification. All state laws vary. You should consult
job. Your policy will pay for their related medicalwith your insurance broker about workers' comp
expenses and replace a portion of their lostissues.
wages, for life if necessary.  OCC/ACC policies,©2009 Amaxx Risk Solutions, Inc. All rights
on the other hand, typically put a cap on injuredreserved under International Copyright Law.
workers’ taxable benefits. Furthermore,