Workers' Compensation

Estimated employer rates for Texas workers' compensation are $0.55 per $100 in covered payroll. Your cost is based on several factors, including:

• Payroll
• Location
• Number of employees
• Industry and risk factors
• Coverage limits
• Claims history

Texas does not mandate this for all businesses, but workers' compensation is required for certain industries. Requirements for coverage include:

• Any public employer, including cities, counties, and state agencies
• Companies that contract with government entities
• State universities
• Building and construction contractors for public employers
• Motorbus companies
• Motor carriers (providing transportation over public highways)
• Liquid propane gas and compressed natural gas dealers
• Employers of inmates in work furlough programs

Even if workers' compensation insurance is not required, it's still a good idea to consider. If an employee is injured on the job, the employer could be held liable to pay for expenses associated with medical treatment, ongoing therapy, and lost wages.

Sole proprietors and the self-employed can elect to buy workers' comp coverage for themselves and may be especially smart if you do physical labor or work in a high-risk industry. Personal health insurance may deny a claim related to your work, leaving you uninsured.

Your health insurance company might deny a claim for an injury related to your work, which could leave you responsible for costly medical bills.

Workers' comp also provides partial lost wages while recovering from a job-related injury, which could be a hero for your finances.

There are three types of workers' compensation benefits in Texas:

• Medical benefits: Medical benefits cover medical care that is reasonable and necessary for the treatment of a work-related injury or occupational disease. The doctor giving treatment must be on a state approval list, or a listed physician must prescribe the treatment to receive this benefit.

• Income benefits: An injured employee can be eligible for temporary income, impairment income, and supplemental income benefits.

• Burial and death benefits: If an employee dies due to a job-related injury or illness, survivor's death benefit is 75% of the deceased worker's average weekly wage, up to an amount determined each year by state. The amount is divided among beneficiaries. This benefit also covers burial expenses up to $10,000.

The following family members could be eligible:

• Spouse
• Child under 18, or under 25 if a full-time student
• Child of any age who was dependent on the worker at the time of the worker's death
• A grandchild who was at least 20% dependent, if the child's parent is not eligible for death benefits
• Other family members who relied on the worker for financial support, if none of the above are applicable