Worker's compensation coverage provides valuable protection for employers, as well as, providing employees with medical benefits and a portion of lost wages should they become injured during the course of employment or suffer from a work related illness or disease.
Texas is the only state that does not require employers to purchase workers compensation coverage. However, it is very risky for any employer to decline workers compensation insurance. Employers that elect to carry workers comp are protected from legal action brought against them by injured employees. In addition, the workers compensation policy will provide legal defense and indemnity in cases of gross negligence.
Employees covered under workers compensation policies benefit from the coverage by receiving medical benefits and coverage for a portion of lost wages. In turn, they forfeit the right to sue their employer for work related injuries, illness or disease.