Opting Out of Texas Workers’ Comp Doesn’t Have to Mean Going Bare

By Stephanie K. Jones | June 5, 2014
Texas Business Owner

  • June 6, 2014 at 11:46 am
    R says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Unless a company is a subscriber under the Texas Labor Code, they loose the common law defenses in court. This applies to ‘going bare’ and to the ERISA plans.

    • June 8, 2014 at 10:37 am
      Retired Risk Manager says:
      Like or Dislike:
      Thumb up 0
      Thumb down 0

      Your comment is inaccurate.

      There are numerous common law defenses that can be presented. Testing positive for drugs / alcohol, intentional injury,employee actions were “sole proximate cause” and, as the Tx Supreme Court has ruled, if the injury is due to an “open and obvious” hazard are examples.

      ERISA has no impact on a liability issue. It applies to the medical / disability elements of the injury. The rules adopted by the employer strictly govern the management of the claim.

      As a risk manager, I managed three nonsubscriber programs. All were very successful. The cost savings, while still providing quality benefits, were substantial. Cost of program (premium, deductible fund, etc.)totaled less than 30% of what comp would have cost.

  • June 9, 2014 at 3:59 pm
    Underwriter says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Nice little promo for nonsubscription. I’ve had my hat handed to me big time on nonsubscriber losses. There’s no telling what will happen when the jury is deciding on the financial future of a severly injured worker.

    • June 10, 2014 at 8:06 am
      Retired Risk Manager says:
      Like or Dislike:
      Thumb up 0
      Thumb down 0

      Every nonsubscriber policy now requires binding arbitration to settle liability issues. Properly written, the arbitration requirement also applies to any ERISA issues.

  • June 13, 2014 at 10:58 am
    Lou Zettler says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Well written article, should be considered a primer for those considering non subscription. Roy Powell referred to the Great American insurance Company as a “general agency”, that is not correct, they are direct writer, fact check

    References to the benefits of ERISA were overly generic, clarity can be obtained from Mr. Mike Dodge, the preeminent author of ERISA plans in Texas and Oklahoma.



Add a Comment

Your email address will not be published. Required fields are marked *

*

More News
More News Features