Many people are familiar with the term Workers’ Compensation but few can truly make sense of it all. Workers’ Compensation is a state-regulated insurance program that pays medical bills and replaces certain lost wages for employees who are injured on the job. Texas stands alone in allowing employers to forego Workers’ Compensation Insurance, resulting in more than 500,000 workers having no coverage if injured or killed.
Besides the huge financial risk of paying medical bills and lost wages without coverage, employers who choose not to subscribe to Workers’ Compensation can face strict penalties. Regardless of participation in the Insurance, any employer with five or more employees is responsible to notify the Department of Workers’ Compensation (DWC) of occupational disease and on-the-job injuries. The fine for not reporting such incidents is up to $25,000 per day.
The advantages to subscribing are numerous. For instance, employee losses are paid through the Workers’ Compensation system. Employees also hold the burden of proof in a lawsuit, and except in certain cases, cannot win judgements for pain, suffering, and punitive damages, thus greatly reducing the employers’ liability. And, benefits are protected by a guaranty association.
With all these benefits why would only 67% of Texas employers opt into Workers’ Compensation? Primarily, cost is the issue for those who do not. There is typically a significant premium down payment required, and depending on a company’s claims, premiums can skyrocket from year to year. Regardless, many businesses have found a way to participate.
By partnering with a Professional Employer Organization (PEO), businesses can now have the affordability and stability they crave. UniqueHR is one of the few PEOs which self-insures Workers’ Compensation. UniqueHR goes beyond simple cost savings because we manage the risk of all our clients in one plan. We provide our clients no premium down payment, stable, predictable costs, and Experience Modification Rating (EMR) protection. Because we have real-time billing, our clients no longer worry about audits. UniqueHR also provides claims investigation and management, back-to-work programs, and loss prevention programs. See the chart linked for more information on UniqueHR’s Workers’ Compensation plan.
It just makes sense for your business and your employees to be covered by Workers’ Compensation. It makes more sense to partner with UniqueHR.