Q. Are Texas employers required to carry workers’ compensation on their Texas employees?
A. No. Employers may elect not to participate in the Texas Workers’ Compensation system (become nonsubscribers).
Q. How does a responsible nonsubscriber replace workers’ compensation benefits?
A. A responsible nonsubscriber replaces Workers’ Compensation benefits with a voluntary benefit plan. The benefits are provided in accordance with the written plan document. The plan is deemed to be an employee benefit and therefore is subject to Federal Law and the Employee Retirement Income Security Act of 1974 (ERISA).
Q. Does the benefit plan protect the employer from employee lawsuits?
A. No. The employee retains the right to file suit for damages sustained as a result of the employer’s negligence.
Q. Do all nonsubscriber injuries end up in litigation?
A. Very few injuries result in litigation. Even the most safety conscious of employers will have occupational injuries. The benefit plan covers legitimate injuries of employees to include medical expenses, loss of income, accidental death and dismemberment. In the vast majority of occupational injuries the benefit plan covers the damages sustained by the employee. Therefore, there are no damages to litigate for. The benefits provided are not defined by Workers’ Compensation. Benefit plans can be designed to fit an individual employer’s situation.
Q. How can my involvement make a difference as a nonsubscriber?
A. Under workers’ compensation you are disqualified from involving yourself in the claims process. As a nonsubscriber the claim process is controlled by the benefit plan and federal law. The plan is allowed to direct care to medical providers as well as what injury-reporting requirements to utilize.
Q. How can I plan for the cost of a catastrophic injury or for the cost of defending a suit for negligence and a possible judgment?
A. Nonsubscribers may insure for these possibilities using a wide variety of Self Insured Retentions (deductibles) and coverage limits to create an insured plan specific to their needs.
Q. If a Texas employee is injured out of state, is he covered under my nonsubscription plan and policy?
Q. Is it possible to insure my non-Texas domiciled employees under my nonsubscription occupation injury plan?
A. No. You will need to continue to purchase Workers’ Compensation coverage for your out of state employees.
Q. How do I become a Nonsubscriber?
A. You must file form DWC-5 with the Texas Department of Insurance every year. Post a notice in English and Spanish for review by your employees in the required Texas state mandated format. Furnish an advisory for each of your employees that you do not subscribe to the Texas Workers Compensation System and a Summary Plan Description (SPD). Maverick General Agency, Inc. can assist with this process.
Q. What does Maverick General Agency, Inc. bring to this process?
A. Over 40 years of combined experience in the nonsubscription industry: We have the knowledge, professionalism, and integrity that will help you out sell the competition and help retain your current clients.