What Are Nonsubscribers?

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Photo of construction workers on a jobsite

In Texas, workers’ compensation is a state-regulated insurance system that provides medical and wage coverage for injured employees. We have always said on our blog that Texas is the only state that does not require employers to carry workers’ comp coverage. Employers that do not carry this insurance are called nonsubscribers.

How Is the Liability Different for Nonsubscribers?

According to the Texas Department of Insurance (TDI), “Nonsubscribers lose important legal protections, including immunity from most lawsuits by injured workers. They could also be forced to pay high damage awards if an injured employee can prove in court that the employer was negligent in any way.”

In other words, workers’ compensation coverage limits an employer’s liability for worker injuries. An injured employee receives compensation benefits, but he or she loses the right to sue their employer.

Besides facing the risk of having to pay punitive damages for an employee’s injury, nonsubscribers lose certain legal defenses, including:

  • Arguing a worker’s negligence caused the injury.
  • Arguing the negligence of other employees caused the injury.
  • Arguing the injured worker knew the hazards and accepted it.

There are no limits on the financial responsibility of a nonsubscriber, which means an employer could be forced to cover all of the expenses of an injured employee.

Hire an Austin Attorney That Can Work on Workers Comp Plans

If you are struggling to receive the full benefits of a workers’ comp plan, make sure you contact our experienced workers’ compensation attorney to fight for what you are owed.

The Law Offices of Aaron Allison – Austin Workers’ Compensation Attorney

Source:  http://www.tdi.texas.gov/wc/employer/cb007.html



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