Factors to consider
There are many factors to consider when choosing an alternative to workers compensation insurance, like ARAWC. Premiums can be expensive, and there is no guarantee that you will get the best possible rate. Fortunately, there are alternatives to workers compensation insurance that can lower your costs and ensure that you get the most coverage for your money.
Opt-out workers’ compensation programs are available to businesses in most states. While most of them allow employees to choose their doctor for the initial visit, they don’t let them choose who treats them for the rest of their injuries. Opt-out workers’ compensation programs have also been overturned in some states due to constitutional concerns. However, South Carolina and Tennessee recently proposed legislation that allows employers to choose their own medical providers. This means that the debate about opt-out workers’ comp laws may continue to rage.
Legality of alternative coverages
There are many options available for employers in Texas, and one of the most common is workers compensation insurance. However, some employers use accident and health insurance policies or create employer indemnity agreements that provide benefits to injured employees. However, Texas law does not recognize these alternative coverages as a substitute for workers compensation insurance. As a result, insurance companies may not market them as an alternative.
Cost of alternative coverages
Companies that are not large enough to qualify for the traditional workers compensation insurance plan may want to consider alternative coverages. Alternative plans can provide significant cost savings for small and medium-sized businesses. These policies allow companies to estimate the costs for routine injuries and illnesses. They also reduce the risk of audits, since premium payments are based on actual payroll wages.
