Employer Has No Workers' Comp Insurance: Now What? (2024)

FAQs

Employer Has No Workers' Comp Insurance: Now What? ›

If your employer doesn't have workers' comp coverage, you generally have one of two options: a personal injury lawsuit against your employer, or. a workers' comp claim with your state's uninsured employer's fund.

Workers' Compensation statutes require employers to provide benefits to all employees unless an employee is exempt. Some states exempt workers of employers with fewer than 1 to 3 employees. Some states exempt workers based on job duties.

You may be covered by workers' compensation as an employee even if you are called an “independent contractor.” • You don't have to be a legal resident of the United States to receive most workers' compensation benefits. You receive benefits no matter who was at fault for your job injury.

Here in Texas, if a company does not participate in the workers' compensation program, we call them a non-subscriber. An employee injured while working for a non-subscriber will be able to sue the company for any losses incurred, such as lost wages, pain and suffering, mental anguish, etc.

Report the injury immediately: As mentioned, it's important to report your injury immediately to your employer, preferably within 21 days. After 21 days your benefits may be reduced, and after day 120, your workers' comp claim may automatically be denied.

If an employer chooses to reject the workers' compensation laws and an employee is injured, the employee may then file a claim or lawsuit against the employer for injuries; and the employer is denied the use of common law defenses, such as assumption of risk, contributory negligence, and negligence of a fellow employee ...

Intentional acts: When a worker intentionally causes their workplace injuries or illnesses, they are not covered under a workers' comp insurance policy. Illegal activities: Employee injuries due to illegal activities at the worksite are not covered by an organization's workers' compensation insurance policy.

The employer shall: Assure that first aid is administered for minor injuries or arrange medical treatment by an employer selected physician or the employee's pre-designated physician when necessary. For extreme emergency get the injured to any available doctor, hospital, or public medical service.

If the injury caused by the employee is simply one of the risks of the business, the employer will have to bear the responsibility. But if the employee acted independently or purely out of personal motives, the employer might not be liable.

The drive to work – Accidents that happen on the commute to work aren't covered by workers' compensation. If you're hurt while driving, walking, biking, or using public transportation to get to work, the workers' compensation system doesn't apply to your injuries.

Can I use my own insurance instead of workers' comp in Texas? ›

Texas law doesn't consider alternative policies and coverage bought from unlicensed insurance companies as workers' compensation. This means you lose your legal protection against lawsuits, and an injured employee could sue you for damages resulting from a work-related injury. You also lose financial protection.

Does Texas Allow Workers' Comp Exemptions for Owners? A sole-proprietorship or a partnership are included for workers' compensation but can elect to be excluded from coverage. LLC Members are included for workers' comp unless they choose to be excluded.

Texas is the only state that gives private-sector employers that choice. Businesses that provide workers' compensation coverage are called “subscribers.” Those who do not are called “non-subscribers.”

Under Pennsylvania workers' compensation law, however, the answer is usually “no.” Your employer cannot be sued because of work-related injuries. Workers' compensation is considered a “no-fault” benefit.

Failing to carry workers' comp insurance is a criminal offense; a non-compliant employer in Pennsylvania can face fines up to $2500 and/or one year in prison for each day that the employer does not have coverage for employees.

Within 21 days from the date the employee provides notification of an injury, the employer/carrier accepts liability for the injury and issues a Notice of Workers' Compensation Payable, a Notice of Temporary Compensation Payable or an Agreement for Compensation to the employee.

B - Pain and suffering are not covered under Workers' Compensation.

However, employers' liability insurance does not cover legal costs from employee lawsuits charging discrimination, sexual harassment, or wrongful termination. To cover these situations, an employer would need to purchase a separate type of policy called employment practices liability insurance (EPLI).

Who is not entitled to worker's compensation benefits? Independent contractors.

Who is not covered by worker's compensation insurance? Injuries of self employed individuals.