Texas Non- Subscriber
Occupational Accident Insurance
We serve all types of Blue, Grey and White collar industries; which include:
Trucking, Electricians, Roofers, Mechanics, Welding, Industrial, Machine Shops, Home Health Care and many others.
A Brief Overview of Non-Subscription
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Non-subscription is a proven alternative to Worker's Compensation. The right of an employer to opt out of the Worker's Comp system was included in the first Texas Workers Compensation laws written in 1913. Businesses that choose not to subscribe become responsible for providing their own injury benefit plan to cover occupational injuries and illnesses and to provide for legal liability defense and damage payments.
Non-subscription became more popular as a result of the Worker's Comp crisis of 1989. Many businesses were forced to opt out of the Workers Comp system or go out of business. As a result, insurers took this opportunity to develop more products to insure the risks of non-subscribers.
Over the years these products have become more comprehensive, offering benefits for medical expenses, disability compensation, life insurance, accidental death and dismemberment, and legal liability coverage. In recent years, many insurers have included binding mediation and arbitration programs. Additionally, these plans must comply with the reporting, disclosure and fiduciary requirements of ERISA.
Some of the more notable employers that are non-subscribers include: Home Depot, H-E-B Grocery, Kroger Company, Randall's, Tom Thumb Markets, Dillards, Pappas Restaurants and Hoover Vacuums.
Employers frequently experience reduced costs as a result of lower premiums , tighter control over fraudulent claims and fewer accidents due to the emphasis on safety and taking a proactive role to employee welfare.
Five Reasons To Become a Non-Subscriber
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Reason No.1 :
Better Medical Care for Injured Employees
As a non-subscriber you can direct insured employees to the best occupational medicine providers. You have control of which doctors are used. This allows you to avoid the types of unscrupulous accident "mills" that can keep your employees out of work longer than necessary and who often prescribe opiate based addictive pain killers. On the other hand, under the rules of a non-subscription program the employer can choose a qualified M.D. who will provide the proper treatment for your injured employee and aid his quick recovery.
Reason No. 2.
Immediate Notice of On The Job Injuries
You can require ( and you should !) your employees to provide immediate notice of on-the-job injuries as a condition of payment of injury benefits. Early notice results in prompt medical attention from pre-approved ( pre-approved by you, the employer) healthcare providers. It also eliminates certain fraudulent behavior. For example "Monday morning injuries: which many times are injuries resulting from weekend activities that are non-work related. This is a common dilemma under workers comp because employees have a window of 30 days to report an injury.
Benefit and Liability Risks are Better Known and Fully Insurable
Over the past decade, state and Federal courts have well defined the employee benefit needs and liability risks of non-subscription. Several strong, experienced insurance carriers provide broad coverage for occupational medical; wage replacement, death and other employee benefits. Liability coverage is also available , although used in less than .01% of all non-subscriber injury claims. Virtually any deductible and coverage limit is available.
A Road Well Traveled
Approximately 40% of all Texas employers have rejected Worker's Comp. Most have been non-subscribers for almost two decades. There are approximately 135,000 non-subscribing employers in the State of Texas; from WalMart , McDonalds and Neiman Marcus to your local grocery store and auto repair shop. Ironically though, there are still many employers that are not aware of this 100+ year old option. Non-subscribers are also very well represented in Austin by the Texas Association of responsible Non-subscribers (TXANS) and the Texas Association of Business and Chambers of Commerce.
Reason No. 5.
Dramatically lower Costs !
Texas is among the most costly states in the U.S. for Workers Comp medical and indemnity costs and lost productivity. Non-subscribers regularly report savings of 25% to 45% off of Workers Comp costs ( while providing better medical care and achieving quicker return to work for injured employees). In general, non-subscription premiums are 25% to 45% less then Workers Comp. Size, risk factors and loss experience determine the extent of savings. Experience Mods do not apply to non-subscribers. The primary cost savings however; is provided by the elimination of fraud.
What Does a Plan Cover ?
The Four Key Benefits of an Occupational Accident Plan
1. Accidental Death and Dismemberment
In the event of an on the job death due to accidental death or dismemberment, most plans will pay up to $150,000 to the employee or his beneficiary. Most plans will also pay an additional $5000 for burial. All other occurrences of dismemberment are paid in accordance with a schedule set forth in the policy.
2. Weekly Disability Payments.
Non-subscribing employers can choose how much of a benefit a disabled employee (from a disability that is work related)
can receive. Most commonly plans will pay as follows: If an employee earns $8.50 an hour or higher, the plan will pay a benefit of 70% of pay per week. If the employee earns less than $8.50 per hour then the benefit is 75%. There is generally a cap on the maximum benefit that is paid. It ranges from $600 to $900 weekly. Benefit plans are also available that pay as much as 100% of weekly wages up to 260 weeks. Benefits are paid using the "7/28" rule. This means that benefits begin to be paid after 7 days. If the disability lasts for 28 days or longer, then the plan pays the benefit for the first 7 days retroactively.
3. Medical Expense Coverage
The plans all pay for a range of medical expenses incurred as a result of an on the job accident. The plans pay 100% of expenses after a deductible. Coverage of costs is usual ,customary and reasonable charges for medically necessary services ordered by a licensed physician. Please refer to the policy for any exclusions. Most plans pay up to limits specified in the policy. We also have a plan with unlimited medical benefits.
4. Employer's Liability Protection
This benefit covers amounts paid to obtain a release of liability or to settle a claim for workplace negligence brought by a covered employee as the result of a covered injury. This includes amounts paid to satisfy a judgement for an employer indemnity claim and the defense costs related to an employer indemnity claim.
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