In Texas, a business owner can opt out of Workers Comp and purchase a non-subscriber business insurance policy to cover employee injury. We’ve seen Dallas manufacturers and restaurants save thousands from choosing this option.
The essential difference between Workers Comp and a non-subscriber policy comes down to claim administration. For Workers Comp, the state administers benefits to an injured employee according to legal statutes, and for a non-subscriber policy, the benefits are applied to an injured employee according to policy provisions. For Workers Comp the state controls the claims process, and for a non-subscriber the insured selects the policy that governs the claims process. The other key difference is price, as a non-subscriber policy on average costs 40% less than a workers comp policy.