Workers Compensation Report Card in Texas

Texas Workers Compensation networks working

Texas Workers Compensation networks working

The Texas Department of Insurance just released their annual report on the state of the Worker’s Compensation heathcare network in Texas.

The 2012 Workers’ Compensation Network Report Card compares health care outcomes across a spectrum of statistics from the twelve network providers with non-network entities. The report is based on telephone surveys of 3,276 injured employees with new lost-time claims, which represents approximately 26 percent of the total lost-time claim population.

And it seems from the results that the system is working efficiently.

Here are some outcomes:

  • Overall, 504-Alliance, 504-Others, Travelers, and Zurich injured employees had lower average medical costs than non-network injured employees for the first six months after the injury.
  • Regarding lost-time claims, 504-Alliance, 504-Others, Corvel, and Texas Star injured
  • employees had lower average medical costs than Non-network injured employees.
  • 504-Alliance, 504-Others, and Zurich had lower average professional costs than Non-network.
  • Overall, networks tended to have higher utilization of professional and pharmacy services than Non-network.
  • Networks tended to have lower utilization of hospital services than Non-network Access to Care and Satisfaction with Care
  • Injured employees from seven network entities reported higher levels of agreement with their treating doctors than non-network injured employees (up from zero networks in 2011).
  • All twelve network entities reported higher return-to-work rates than Non-network.
  • All twelve network entities had lower average numbers of weeks off from work than Non-network.

Information on the Workers Compensation network itself is also on the TDI website.

For more information about Workers Compensation insurance, call Statewide Insurance Brokers at 888-258-0272.

Worker’s Compensation Policies Protect Contractors and Subcontractors

Men at WorkWorkers covered under worker’s compensation insurance in Texas may not sue subcontractors or contractors as long as their worker’s compensation policies are in place, even though they are not the same policy, or so said a recent decision by the Texas Court of Appeals.

In the case Garza v. Zachry Construction Corp., 2012 WL 1864350 (Tex. Ct. App. May 23, 2012), an employee of DuPont at its Ingleside, Texas plant was injured in a rail accident and received worker’s comp benefits from DuPont. However, he also attempted to sue a subcontractor and several of its employees who were responsible for the accident. DuPont had them covered under a different worker’s compensation insurance plan. The subcontractor argued that because DuPont provided the coverage, they were also “deemed employees” of DuPont so could not be sued under Texas labor statutes.

The plaintiff argued basically that because employees of DuPont and the subcontractor were not covered under the same policies, that the bar against filing suit for injury did not come into play. And they further argued that even if the bar did obtain, it violated the Texas constitution guarantee of open courts – that a common-law cause of action will not be hindered from access to the courts.

The Court of Appeal agreed with the argument of the defendants.

So as long as your worker’s compensation policies are in force, contractors and their subcontractors are protected from suit by employees.

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.
Photo credit: FreeDigitalPhotos.net

Walmart Opts Out of Texas Worker’s Compensation

Worker InjuryLast month Walmart pulled out the Texas state-run Worker’s Compensation system. Texas is the only state that allows companies to opt out of the system. And large companies in Texas have been taking advantage of it to put in place their own injured worker’s insurance plans to reduce costs and bring them under their own control. The negative to the scheme is that it opens such companies up to a larger exposure for expensive litigation claims on worker injury.

As of 2010, in a survey conducted by the Texas Department of Insurance, fifteen percent of Texas businesses with more than 500 employees do not carry state workers’ compensation coverage.

Daniel Morales, a spokesman for Wal-Mart, said the company is “sort of late to the game” in switching to its own program.

The Texas Tribune reported that under Wal-Mart’s in-house plan, total medical coverage is capped at $300,000 for individual injuries, compared with lifetime coverage for the injury under state workers’ compensation. The Wal-Mart plan provides 90 percent of lost wages for injured employees for up to 120 weeks, compared with 70 percent of lost wages for up to 401 weeks under the state system. That is a maximum of $54,000 in lost wages provided under Wal-Mart’s policy, and $140,350 under state workers’ compensation.

Industry watchers are wondering how this will all play out. The AFL-CIO is now lobbying the state to make the state-run worker’s compensation program mandatory. The current opt-out option, they say, is endangering the system for injured workers and not providing as good benefits. Businesses obviously wish to keep their costs lower and some analysts speculate that enforcing the state-run system may bankrupt some who can’t afford it. Also whether increased litigation exposure on injured worker claims will eventually make the private plans nonviable.

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.
Photo credit: David Castillo Dominici

16th Annual Workplace Safety & Health Conference

Downtown Austin

Downtown Austin

The Texas Department of Insurance is sponsoring the 16th Annual Workplace Safety & Health Conference being held in Austin on April 10, 11, & 12, 2012 at the Doubletree Hotel.

This Year’s Line-Up

  • Pre-Conference Session – Basic Workers’ Compensation for Employers and Return to Work – Danny Taylor
  • General Session I – Technology in Collision Reconstruction – Clifford McCarter
  • General Session II – OSHA Region VI Update – John Hermanson
  • General Session III – Demographic Change in the United States – Dr. Richard Lewis
  • General Session IV – Personal Fitness for Work – Petti Redding
  • Plus Breakout Sessions on Various Topics

Who Should Attend?

  • The Texas Safety Summit is a forum for all segments of the Texas workforce.
  • Small to large employers
  • Public and private sector
  • Workers’ compensation subscribers AND non-subscribers

Why should you attend?

  • Sharpen your skills and get updates on critical issues in accident prevention.
  • Discover how the Division of Workers’ Compensation can assist you in reducing injuries and compensation costs through workplace safety and return-to-work programs.
  • Network with regulators and industry professionals who are responsible for workplace safety and health just like you.
  • Share experiences as well as solutions while recharging your energy and enthusiasm for preventing injuries, and saving lives.
  • Learn practical tools and techniques that you can take back and put to use in your workplace.

The Texas Safety Summit will offer important information for all types of people who play a role in safeguarding Texas employees, from
the beginner to the seasoned safety professional.

  • Office Managers
  • Human Resources Representatives
  • Managers/Supervisors
  • Safety Managers/Coordinators/Officers/Engineers
  • Union Safety Representatives
  • Safety Committee Representatives
  • Health Care Providers
  • Risk and Loss Managers
  • Occupational Safety or Industrial Hygiene Professionals
  • Consultants
  • Contractors
  • Safety Trainers
  • Workers’ Compensation Insurance Company Representatives
  • Government Representatives

Affordable conference registration and hotel room rates make the Texas Safety Summit a worthwhile tool to help your organization
prevent workplace injuries.

Conference fees include:

  • All conference materials (including copies of all speaker handouts available at press time)
  • Practical training and information to use in your workplace
  • Instruction from nationally- and locally-known subject matter experts
  • Breakfast, lunch and break refreshments

For full information, check out the Texas Department of Insurance information page.

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.

How Independent Contractors Benefit You

Independent contractors are a boon for employers. But sometimes knowing whether or not you have correctly classified your independent contractors for IRS purposes isn’t always easy.  Moreover, these kinds of workers also impact your business in ways that will require you to think carefully about the kind of insurance you will need to buy for your company.

An independent contractor is defined as an individual who contracts with a business to provide services for that organization. It’s important to know that this title should not be applied to individuals who are part of a department that has been outsourced to another firm.

Furthermore, it also important to be aware that an independent contractor does not have the legal status of an employee and can go by other names such as freelancer, consultant or simply contractor. When you hire a person who is part of another business operation, he or she could still be classed as an independent contractor.

Following are just a few of the reasons that more businesses are benefiting from the services of independents:

  • Technological advances – Computer technology allows for greater mobility than ever before and many jobs that once required an office setting to complete can now be done just as efficiently off-site.
  • Changing worker needs/demands – These days, workers want flexibility and greater work/life balance. They want to know the they can create schedules that conform with their lifestyle choices.
  • Cost effectiveness –  Because an independent contractor is not a regular employee, businesses don’t have to pay payroll costs such as federal payroll taxes, unemployment insurance premiums workers compensation premiums, overtime and employee benefits.

At the same time, you need to be aware that independent contractors require careful handling. You can still be held responsible for on-the-job injuries as well as complications arising from intellectual property issues. Finally, if you use independent contractors but treat them as employees, the IRS will require you to pay all back taxes owed with interest, plus a penalty.

If you are planning to hire contractors then your business needs both general liability insurance as well as a  workers compensation policy. Not having either one in place puts you and your business at risk for losses that may come about as a result of unforeseen events involving your contractors.

When you contact the brokers at Statewide Insurance, you can rest assured that you will not only be getting top-notch service but the best quotes on the best policies for your business. We know insurance like nobody else.  Let us show you the Statewide difference!

Photo credit: AscensionDigital
Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.

New California Laws Discourage Illegal Contracting Practices

California contractor laws

The changes in California law are intended to protect honest contractors.

The California State Assembly recently passed two measures intended to end the practice of what has come to be known as “black market contracting.” According to Aqua Magazine online, these laws specifically target contractors who “skirt workers compensation insurance.”

The first measure, AB 397, “requires contractors claiming workers’ compensation exemptions to recertify their status or supply proof of insurance whenever they renew their licenses.” The second measure, AB 878, “requires insurers to report client companies underreporting salaries to the Contractors State License Board (CSLB).”

Both laws are intended to address illegal contracting practices that have hurt consumers as well as “law-abiding contractors who have struggled to compete against those who cut corners by not properly insuring workers.” They also come at a time when the CSLB is cracking down on unlicensed contractors through sting operations. Aqua Magazine reports that in November, the Statewide Investigative Fraud Team (SWIFT) unit of the CSLB “arrested eight illegal contractors [in] Murrieta” and that “similar operations netted 113 violators in eight other cities.”

California is, of course, not the only state to face this dilemma, nor is the problem endemic to just one industry: “illegal contracting practices have [plagued a variety of] markets all over the country.” The recession that began in 2008 has only made the situation worse, especially in unstable economic climates like the one that has characterized the Golden State.

If you are a California contractor who is unsure if your own liability coverage meets the requirements, contact the experts at Statewide Insurance. They’ll help you understand the changes so that you can take care of your workers—and ultimately, your business—the right way.

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on contractor’s insurance.

California Independent Contractor Classification Law

Do you operate a business in California that retains independent contractors? If so, you need to be aware of a new state law that, according to the Monterey Herald.com, “penalizes businesses that ‘willfully misclassify’ employees as independent contractors.”

California workers comp

Knowing California independent contractor laws includes acquiring the proper liability insurance and workman's comp insurance if needed.

Under current law, businesses that engage in this kind of misclassification “are subject to consequences, including liability for payroll taxes, unpaid unemployment insurance contributions and penalties for failure to secure workers’ compensation coverage.” Moreover, “because the misclassified individuals have not been paid pursuant to wage and hour laws,” they are often entitled to overtime pay as well as compensation for “missed meal and rest periods.”

Many business owners believe that if they have an independent contractor agreement with the worker, they are in compliance with law. However, such an agreement alone does not necessarily determine whether a worker is an independent contractor. As the Monterey Herald.com further reports, “the most important factor is whether the business has control or the right to control worker as to the work done and the manner and means in which it is performed.”

Under Senate Bill 459, which will go into effect on January 1, businesses will be subject to hefty fines ranging from $5000 to $25,000 per violation if they:

  • willfully misclassify a worker as an independent contractor or
  • charge a person who has been “willfully misclassified as an independent contractor a fee or make any deductions for compensation.”

This new law interprets “willful misclassification” as “voluntarily and knowingly misclassifying” an individual as an independent contractor.

The message behind Senate Bill 459 is simple. If your California business uses independent contractors, be careful how your categorize them in your records: misclassification could cost you a bundle.

If you have independent contractors or operate a business yourself, be sure you are in compliance and secure the proper general liability insurance or workers compensation as needed. Call Statewide Insurance Brokers at 888-258-0272 for a fast, free quote!

Texas Workers Comp and the Exclusive Remedy Provision

texas workers comp statewide

Working in Texas? The workers comp rulings recently changed. Read about them here.

JDSupra.com reports this week that the Amarillo Court of Appeals has ruled that “the exclusive remedy provision of [the] Texas Workers Compensation statute also served to preclude contract-based claims against the employer arising under uninsured and underinsured motorist coverage.”

Simply stated, workers cannot claim more from an employer than what workers compensation offers, even if the employer has other forms of applicable insurance.

The judgment stems from a case involving a city of Lubbock employee who was injured when the vehicle that employee occupied “was struck by another vehicle owned and operated by an underinsured drunk driver.” While the city was covered by workers compensation and uninsured/underinsured motorist (UM/UIM) coverage, it also had a half-million dollar deductible under its UM/UIM policy.

The employee received workers compensation, but then attempted to collect money from the UM/UIM policy as well. After the insurer, St. Paul Fire and Marine Insurance Company, denied the claim, the employee filed a lawsuit. The court judged in favor of both the city of Lubbock and its insurer, but the employee appealed the decision.

The Amarillo Court of Appeals affirmed the previous judgment. According to its ruling, “if an employee suffers work-related injuries and seeks their redress from an employer that subscribes to a workers compensation program, there is only one [and that] is through [the] workers compensation program.”

Texas employers can now rest a little easier knowing that this latest court ruling lessens their chances of being taken advantage of by employees claiming more than their fair share of damages.

Get Texas workers compensation insurance quotes quickly from Statewide Insurance Brokers. Call 888-258-0272.

What is Workers’ Compensation?

workers comp statewide insurance brokers

Workers comp is vital for your employees, and your business

Workers’ compensation is insurance that pays medical care for employees who are injured on the job. Each state has its own laws and programs for workers’ compensation, but the United States government also administers a workers’comp program for federal employee as well.

When someone you hire signs a workers’ compensation form, that person gives up the right to sue you. In return, workers’ comp guarantees that if that individual becomes injured, disabled or ill on the job, he or she will be compensated for it.

What Does Workers’ Compensation Cover?

Workers’ comp typically pays for any hospital and medical expenses as well as days missed as a result of the injury/illness. Health problems or conditions that develop suddenly (such as a fracture that results from a fall) or over a long period of time (such as carpal tunnel syndrome) will usually receive coverage. Furthermore, an affected employee can get benefits for any job-related injury/illness that occur in the following instances:

  • during business travel
  • while doing a job-related errand
  • while attending a required business-related social event.

Claims can be filed regardless of who was at fault. Those causing injury/illness could include:

  • the employee
  • you the employer
  • a coworker
  • a client
  • a third party

Workers’ compensation is usually denied when the injuries/illness are:

  • self inflicted
  • incurred during off-work hours
  • incurred while the employee was committing a serious crime
  • the result of employee conduct that violated company policy

Examples of Workers’ Compensation Claims

Here are two situations that illustrate when an employee could file a workers’ comp claim.

CASE A: Visible/Verifiable Injuries

John Doe, a careful and conscientious employee, works in a factory that houses potentially dangerous equipment. On one particular occasion, John accidentally gets his hand caught in machine. He is on the clock and working in the factory when the incident occurs. His fellow workers stop the machine and free him. But now, he will need to have medical care to take care of his injury. Workers’ compensation insurance will reimburse John for his medical expenses and pay him for the days he needs off to recover.

CASE B: Invisible/Difficult to Verify Injuries

Jane Doe works in an office. Generally, offices are not highly hazardous work areas, but sometimes accidents can happen. Jane Doe claims that her back has been injured due to long periods of sitting at her chair and attempts to file a claim for workers’ compensation. Jane may have a justifiable claim. But if she is dishonest, she may try to get money and time off for a nonexistent injury. Sadly, some exaggerated–or in some instances, patently false–claims such as Jane Doe’s can actually be honored if they cannot be proven otherwise.

The cases described here are simple ones meant only to demonstrate the different kinds of injuries/illness that can occur at any time and in any type of working environment. Staying aware of what can happen and selecting workers’ compensation insurance that protects your employees while it also protects you are two of the most important things that you can do for your business.

To get a fast quote on workers’ compensation insurance for your business, call Statewide Insurance Brokers at 888-258-0272.

Choosing a Good Minnesota Workers Insurance Agent

Minnesota workers comp insurance statewide insurance brokers

Whether you're in Saint Paul, Duluth or Minneapolis, selecting good workers comp insurance providers is vital. Let Statewide Insurance Brokers help.

In Minnesota businesses are required to carry workers compensation insurance. When looking for an insurance agent from which to purchase a Minnesota workers compensation insurance policy from, there are a few things to keep in mind to make sure that you get the best policy for your business.

  1. Make sure your agent specializes in Minnesota workers compensation insurance. While many agents offer workers compensation insurance in Minnesota, not all specialize in it. If your insurance agent is mostly selling auto insurance, chances are that their knowledge of Minnesota workers compensation insurance is rudimentary at best. When it comes to workers compensation insurance, you want to make sure that your policy is written by someone who has had experience crafting these types of policies in the past.
  2. Carefully choose your agent. Your insurance agent should be able to refer you to an agent who understands your type of business operation and who is financially stable and committed. You can also ask for a referral from a fellow business owner. Some insurance agents are direct writing agents, meaning that they are direct employees of the insurance company and will be limited to providing you only the coverage that their company offers you while an independent agent may be able to provide you with a variety of carrier options since they represent different insurance companies. You will have to determine which is best for you and your company.
  3. Ask questions. When you meet with the prospective agent, you should interview them. Ask them about their A.M. Best rating. A.M. Best ratings are given to insurance companies by an independent rating company, A.M. Best, and will tell you a lot about how the company does business. Companies with a rating of A or B should be considered, any lower and you should probably pass. You can also ask for their license number and check it with the Minnesota Department of Commerce.
  4. Shop around. You will also want to shop around and see who offers the best rates and coverages with their Minnesota workers comp policies. An independent agent is a good idea here, as they work with a number of insurance agencies and will be able to compare prices for you. Remember that if you work with a direct agent, you will only get information on the insurance company that they represent.
  5. Keep your policy up to date. Once you buy your policy, keep up to date on policy changes. Due to new legislation that is passed, insurance laws change. In addition, your business is not static and it to undergoes changes that may effect your worker compensation insurance. Make sure your Minnesota workers compensation insurance is up-to-date by contacting your insurance agent periodically to ensure that it is robust enough to keep you financially secure in the case of an on-the-job related injury.
For help in acquiring Minnesota Workers Comp Insurance, call Statewide Insurance Brokers at 888-258-0272.