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There are approximately 1.5 Million employees working for the 124,000 No.subscribing employers in the State of Texas: Examples include Walmart, Whataburger and Baylor Hospital all the way down to your local restaurant, grocery store and auto repair shop. And yet, many are still unaware of this 100+ year option available to Texas Employers.
Today, we continue with Part 3 of the five part series on "The Basic Differences Between Texas Non-subscription vs. Workers Compensation.
The first four questions we have covered are listed below. The answers are located in my prior blog posts.  
1. How does the price compare between Non-subscription and workers compensation?
2. Are benefits the same between Texas Non-subscription and workers compensation?
3. Are there any other main differences between workers compensation and Texas non-subscription?
4. What is "Exclusive Remedy" and does it apply to both workers compensation and Texas non-subscription?

This week's questions are:
5.      Many non-subscription plans require mandatory arbitration for negligence claims. Why is that?
As we noted last week, on average, approximately 1-3 per 1000 ( .1 to.3 of 1%)  of all claims have some sort of attorney involvement. Like General Liability and Auto Liability claims, without arbitration, disputed non-subscriber negligence claims can be taken to Court.
There are three basic reasons employees litigate against their employer: a claim in their estimation is improperly denied, the benefits provided by the Benefit Plan run out before the injury is concluded, and there is clear negligence on the part of the employer that caused or contributed to a significant workplace injury.
Improper denial occurs infrequently. Under ERISA, if there is an improper denial, an injured employee can  bring suit for the benefits that were improperly denied. These benefits, when paid, are covered by virtually all non-subscriber policies.
The easiest way to alleviate legal claims due to the depletion of benefits is to provide substantial benefits for an extended period of time. An injured employee has 2 years to file a negligence claim. We recommend benefits that extend at least 3 years and preferably 5 years. In addition, CPro has introduced our "No Dollar Limit" Medical to mitigate the medical risk. In addition, we think it only proper to take care of an injured employee as much as possible and we feel "No Dollar Limit" Medical is the best way to do so.
Of course, the best way to eliminate a negligence claim is to prevent it from happening. Nothing can replace good safety, whether a non-subscriber or in WC. But, in the event of a workplace injury, the best way to reduce legal exposure is to make sure arbitration is introduced.
One recent article stated that there have been over 100 non-subscriber negligence court judgement in excess of $1,000,000. Contrasted with arbitration, which has had only 5 awards in excess of $1,000,000 since it's introduction in 2000 (the largest being $2.9MM and the 2nd largest being $1.3MM) and the reason for mandatory arbitration is clear: results.
6.      Does only Texas have non-subscription and is it new to the State?
Non-subscription has always been permissible in the state of Texas, but it was not until 1988, when the first non-subscriber insurance policy became available, that it expanded greatly. Today there are 1.5 million workers under option injury benefit plans covering billions of payroll. Oklahoma introduced its Option in 2014 and now has tens of thousands of employees. CPro estimates up to 20 States will have an Option in the next 5 years.

For more information you can reach Al Ferriulo  at 817-834-1700 or 888-834-4252. 

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