{"id":55841,"date":"2020-08-24T09:08:13","date_gmt":"2020-08-24T14:08:13","guid":{"rendered":"https:\/\/www.terrybryant.com\/?p=55841"},"modified":"2025-03-10T16:11:58","modified_gmt":"2025-03-10T21:11:58","slug":"what-happens-if-an-employer-does-not-have-workers-comp","status":"publish","type":"post","link":"https:\/\/www.terrybryant.com\/what-happens-employer-does-not-have-workers-comp","title":{"rendered":"What Happens If an Employer Does Not Have Workers’ Comp?"},"content":{"rendered":"

It\u2019s an important question that many Texas workers are forced to grapple with: What happens if an employer does not have workers’ comp? <\/em><\/p>

<\/div>\n

Unfortunately for workers, when an employer does not have workers’ comp, employees are not eligible for workers\u2019 compensation benefits<\/a>. However, this doesn\u2019t mean that a worker is without options for other forms of compensation. <\/p>\n

Workers\u2019 compensation is an insurance program that was originally intended to make sure a worker won\u2019t become destitute after being hurt on the job. Each state has its own laws concerning workers\u2019 compensation, and Texas has a reputation for having the most business-friendly workers\u2019 compensation laws in the nation. This also means that Texas law is less friendly toward injured workers. <\/p>\n

Though businesses in Texas aren\u2019t obligated to carry workers\u2019 compensation insurance, they pay a price in liability for forgoing participation in this program. Before we look more closely at a worker\u2019s options if their employer doesn\u2019t carry work comp insurance, let\u2019s take a brief look at Texas law. <\/p>\n

Workers\u2019 Compensation Law in Texas – Understanding Non-Subscribers<\/h2>\n

Texas is the only state in the U.S. that allows employers to opt out of state-managed workers\u2019 compensation programs. Employers that do not participate in the program are considered \u201cnon-subscribers.\u201d This means that their employees are not guaranteed the same protections when injured on the job. <\/p>\n

Workers\u2019 compensation insurance offers employees certain guarantees, such as no-fault coverage from the first day on the job. Benefits should be given to workers regardless of who was responsible for the injury. Employees are eligible for workers\u2019 compensation benefits from the moment they start working. <\/p>\n

Workers\u2019 compensation insurance programs aren\u2019t just intended to benefit workers. Employees are, in turn, protected in the amount of liability they face for a worker\u2019s injury. So, when an employer opts out of the Texas workers\u2019 compensation system, they are more vulnerable to legal action from the employee. <\/p>\n

Though some employers purchase accident, disability and health insurance policies for employees or find other methods to serve as an alternative to workers\u2019 compensation, Texas law is very clear that these methods are not considered a substitute for workers\u2019 comp. These policies have limits that typically make them less comprehensive for workers, while also failing to limit an employer’s liability in the event of a workplace injury, which can lead to a work injury lawsuit<\/a>.<\/p>\n

Taking Legal Action Against a Non-Subscribing Employer<\/h2>\n

According to Texas law, an injured employee can take legal action against a non-subscribing employer to seek compensation for the damages they\u2019ve suffered. If the injured worker can prove that the employer\u2019s negligence was responsible for the injury, they could be eligible for high damage awards. <\/p>\n

An injured worker whose employer is a non-subscriber can seek compensation for damages including\u2026<\/p>\n