Workers compensation is a type of insurance that provides benefits to employees who are injured or become ill as a result of their job. In most cases, workers compensation insurance is mandatory for businesses in Texas.
The main benefit of workers compensation insurance is that it can help cover medical expenses and lost wages while an employee is unable to work. Workers compensation coverage in Texas also helps protect employers from financial liability if an employee is permanently injured on the job.
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If you operate a small business in Texas, you may be eligible for workers compensation coverage if you meet certain requirements. For example, your business must have at least five employees and must have been operating for at least six months. You may also qualify if you are self-employed and have income from your business that exceeds $30,000 per year.
In Texas, there are three categories of workers' compensation insurance: general liability, automobile, and workers' compensation. Each category has specific coverage limits, exclusions, and requirements.
General liability insurance provides protection against lawsuits filed by people or organizations that have been harmed as a result of your business activities. Coverage typically includes $1 million per occurrence and $5 million in total coverage.
Automobile insurance provides protection against injuries or damage to your company's vehicles. Coverage can be as high as $100,000 per occurrence and $250,000 per vehicle. Workers' compensation insurance provides benefits for employees who are injured on the job. Coverage typically includes benefits for medical expenses, wage replacement, and death benefit.
To get a better understanding of what type of coverage your business needs, contact an insurance agent or consult with a workers' compensation lawyer.