Non Subscribers

We help insurance companies, third-party administrators, and managing general agents to design, prepare, and implement Texas Non-subscriber insurance programs, including Texas policy form, content, and regulatory approvals, programmatic ERISA plan packages, insurance agent training, and claims defense.

What is a Non-Subscriber?

• In 1989, Senate Bill #1 was passed, which allows an employer to "opt out" of the Act. By doing so, the employer leaves the "no fault" workers compensation scheme and enters a negligence based system and can therefore can be liable to an employee if found to be negligent. In other words, if an on the job injury occurs, an employer is required to pay damages to an employee to the extent liable under the common law and statutes of Texas

• The non-subscriber's standard of negligence is: the employer has the continuous and non-delegable duty to furnish its employees with a reasonably safe place to work. To recover from a non-subscriber, an employee must show (a) the loss occurred in the course and scope of employment, and (b) the injury was caused by the employer's negligent breach of duty.

• A non-subscriber often purchases occupational accident insurance to insure much of their exposure, including defense coverage, typically at lower rates than workers' compensation insurance.