When it comes to business insurance, every company has unique needs. It’s up to each owner to determine the most significant risks their operation is facing and then purchase coverage accordingly. However, virtually all businesses should buy workers’ compensation coverage. If you own or operate a company in Texas, below are a few questions that people have about these policies. 

FAQ About Workers’ Compensation Insurance 

Do I have to purchase coverage?

Unlike other states, Texas doesn’t require companies to purchase workers’ compensation coverage with the rest of their business insurance. However, it’s still advisable to buy it, because it will protect you from litigation if an employee gets hurt on the job. Having adequate coverage will also allow you to accept government contracts because government agencies can only work with companies that have such protection. 

What are the benefits?

The workers’ compensation program benefits both injured employees and their employers. The former gets the funds they need for medical care and lost wages, while the latter has protection from personal injury lawsuits. As such, workers’ compensation coverage could pay for itself after a single claim.

Who sells workers’ compensation insurance?

Purchasing workers’ compensation coverage is similar to buying other kinds of business insurance. A seasoned agent can help you find a company that’s licensed to provide such policies to employers. The insurance agent can also help you determine how much coverage you should buy for optimal protection. For example, an oil drilling company will likely need much more coverage than a marketing firm.

If I buy coverage, how will an injured employee file a claim?

As the policyholder, the business owner must facilitate each workers’ compensation claim. That means if any of your employees get hurt on the job, you must meet the carriers’ reporting requirements, which may include strict filing deadlines. They may also require a drug test, medical records, and witness statements to process the request.

For affordable business insurance—including workers’ compensation coverage—that will meet all your needs, turn to Stidham Insurance Agency. Based in Dumas, TX, this family-owned and -operated company has been in business since 1969. Serving clients across the Texas panhandle, they work with a broad range of national carriers, which allows them to provide the best packages possible. To request a quote for your business insurance policy, call (806) 935-6888. For more information about their services, visit the website.