Most Texas employers aren't required to have workers’ compensation insurance. Additionally, the employers that choose to have this coverage aren't always required to purchase it from an insurance company.
Instead, some employers may self-insure for potential workers’ compensation claims.
One way to self-insure workers’ compensation in Texas is to join a self-insurance group. Self-insurance groups must be approved by the Texas Department of Insurance and have at least five members that all:
- Are in the same or similar businesses.
- Belong to a trade or professional association in Texas—that exists for reasons other than insurance—for at least five years before creating a self-insurance group.
- Agree to group together their workers’ compensation benefits and employers’ liability.
- Provide financial documentation and evidence of performance bonds to the Texas Department of Insurance.
- Provide a security deposit.
- Establish an estimated annual premium, that may be modified, of at least $250,000 during the group’s first year as a self-insured group; and an annual standard premium of at least $500,000 in all subsequent years.
- Have not less than $10 million per occurrence of excess insurance.
- Pay all required fees and taxes to support the administration of the self-insurance group program.
All of this information must be submitted to the Texas Department of Insurance Company Licensing and Regulation Office on specific forms, and any changes must also be reported to the Department.
What Self-Insurance Means for Injured Workers
If your employer is part of a self-insured workers’ compensation group, then it has a form of workers’ compensation insurance. Should you be injured on the job, the company must provide you with workers’ comp benefits.
To pursue a fair recovery after a work injury, report your injury to the Texas Department of Insurance Division of Workers’ Compensation (DWC Form-041) within one year of the incident. Also consult an experienced workers’ comp lawyer as soon as possible. Use the contact information on this page to reach Steven M. Lee, PC today and schedule a free, confidential initial consultation about your workers’ comp benefits.
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How Self-Insurance Workers' Compensation Groups Work in Texas
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