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Texas |
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Workers Compensation Insurance FAQs |
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Q. Is Workers Compensation mandatory? |
| A. In
Texas, firms may elect whether or not to be covered by the workers compensation
statute. Firms that elect
not to be covered are governed by common law and injured employees may
recover whatever a judge or jury deems appropriate. |
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Q. Are there any exceptions? |
| A. Firms
that elect to be governed by the statute are protected by more favorable
laws but must carry Workers Comp insurance. If a firm elects to be covered
by the law, all employees must be insured. There
are, however, special rules that apply to partners, sole proprietors,
and corporate officers. |
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Q. What are these special rules? |
| A. If
the firm elects to be governed by the statute, partners, sole proprietors,
and corporate officers with at least 25% stock ownership may reject coverage.
A signed form is necessary
to reject coverage under the Texas Workers Compensation statutes.
A signed form is also necessary for partners, sole proprietors,
and corporate officers to reject coverage. |
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Q. What if a corporate officer does
not take a salary? |
| A. The
payroll used to calculate premiums for corporate officers is subject to
a minimum of $7,800 annually and a maximum of $62,400. |
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Q. What does an injured worker receive? |
| A. All medical bills are paid and if
the worker cannot work for an extended period of time, disability benefits
are paid up to a maximum of $
523.00 per week. |
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| Disclaimer: The information is accurate to the best of our knowledge.
These rules and dollar amounts are, however, subject to change. You should not depend on this information until it has
been verified with your insurance agent or company. |
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| Source: This information was compiled from the 1999 Analysis
of Workers' Compensation Laws published by the US Chamber of Commerce
and from the on-line resources of the National Council on Compensation
Insurance. |
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© 1999 - 2003 Horenberg Insurance Services, Inc. |