Workers’ compensation insurance

Do you have employees? If so, you need to read this article on workers’ compensation insurance.
 
What is workers’ compensation insurance? WC protects employers from liability via the Workers’ Compensation Act. This is called “Exclusive Remedy.” The employees “remedy” for treatment of injury and loss of income is the WC insurance.
 
There are three choices for employers regarding workers’ compensation insurance. The only states that don’t mandate WC insurance be carried by employers is Texas and Tennessee.
 
Option one is to be a non-subscriber, or self-insured. If this is your option, you are liable for any claim. You have no exclusive remedy for your employees and could suffer a catastrophic financial loss with one sizable claim. You are truly going it alone. There are occupational health & accident policies for non-subscribers that reduce some of the associated risks. These policies are not WC insurance.
 
Option two is contacting an insurance agent and purchasing a WC policy and becoming a subscriber to the WC Act and protected by “exclusive remedy” up to the limit of your policy. If the claim is for more than your policy limit you will find yourself liable for the excess amount. Your insurance carrier will manage your claim. You must report your on-the-job injury to your carrier and appropriate documentation must be made. You will be provided with specific guidelines to follow should an employee be injured at work.
 
Option three is to become certified self-insured. Do not get this confused with self-insured (non-subscriber). To become insured in this manner a Certificate of Authority to Self-Insure is issued by the Texas Workers’ Compensation Commission.
 
The detailed application process, stringent tests of financial strength and liquidity, and substantial security requirements make the Texas Certified Self-Insurance Program one of the most demanding in the country.
 
Comparison studies examined by the Texas Department of Insurance show that certified self-insured employers had significantly lower WC claim rates, most likely due to the strong emphasis on safety the Texas Workers’ Compensation Commission (TWCC) places on certified self-insured companies. TWCC’s Certified Self-Insured Program has been successful by lowering claim rates and by having a significant and immediate impact on the severity of workplace injuries over time (as measured by the reduction in Temporary Income Benefits). Therefore, lower claim rates equal lower insurance costs.
 
This is your best WC choice; while you are probably unable to achieve this certification on your own, there is a solution. Team up with a Professional Employer Organization (PEO) that is certified self-insured.
 
There is only one PEO in Texas that has met the criteria to become Certified Self-Insured in the State of Texas and that PEO is Unique HR. Unique is as highly certified and accredited as any professional employer organization in the country. In addition, they are headquartered right here in Corpus Christi.
 
Unique HR – The Total Human Resource Company provides payroll administration, human resource solutions, safety training, employee handbooks /safety manuals, benefits and a multitude of other services in addition to providing certified self-insured WC insurance.
 
In addition, they are pros at managing WC claims weeding out fraudulent claims and getting workers back on the job as soon as possible. If you were a subscriber to WC through a large insurance company, would your claim have proficient management?
 
Unique HR – The Total Human Resource Company provides $1,000,000 in WC coverage to their client companies. Unique has teamed with AIG to provide excess coverage should the claim go over $1,000,000. Additionally, we have $2,000,000 Employer Liability Per Accident Umbrella.
 
PEO’s can be an affordable option. All business leaders should seriously look at outsourcing HR business processes, as they can help protect your assets in a multitude of ways.
 
For a closer look at the PEO industry and to see if it’s right for you and your business call or email Connie Laughlin for more information. Connie can be reached at (361) 852-6392 or at conniel@uniquehr.com.