Texas is currently the only state that allows employers to opt out of the workers’ compensation system, becoming a non-subscriber. Being a responsible non-subscriber means assuming control and responsibility for employee work-related injuries.
You can elect to buy a non-subscription/ERISA plan to help cover medical costs, lost wages and also to provide employers liability protection. A properly structured non-subscription program includes claims management and medical bill review provided by a third party administrator.
Texas law requires Employers that elect not to carry workers’ compensation insurance to:
- Post a notice of non-coverage
- Give written notice to employees
- Annually notify DWC (Department of Workers’ Compensation, a division of Texas Department of Insurance)
- Report injuries to DWC