Workers’ Compensation Isn’t Mandatory in Texas
After calling our office and speaking with our daycare specialist, Jessica discovered that Texas is unique in not requiring private employers, including daycares, to carry workers' compensation insurance. While that may sound amazing as it is one less cost to worry about in an already tight budget, she realized it was a little more complicated than that.
Jessica realized that the absence of a legal requirement didn’t mean the absence of risk. The agent explained that not carrying workers compensation insurance meant that she would be responsible for the medical costs of her employee injuries that happened while on the job. That meant this finger bite was her responsibility.
More importantly than her daycare being financially responsible for medical care, she could also be responsible for rehabilitation and lost wages. Worse yet, an injured employee could sue, leading to extraordinary legal costs. Jessica was now glad that her daycare center had this type of coverage.
What Does Workers’ Compensation Cover?
Workers' compensation coverage steps in to cover medical expenses, lost wages, rehabilitation costs, and other potential liabilities for employees injured or sickened while performing job-related tasks. These are not covered by general liability coverage, but this would include being bitten by a cranky two year old.
Jessica's staff often engaged in activities with injury risks—lifting children, cleaning classrooms, and supervising outdoor play. Workers' compensation coverage could also protect her daycare from the cost of legal defense of lawsuits. Negligence by a daycare provider can still be proven, but employees covered by these types of coverage are generally limited in their ability to sue their employer for workplace injuries.
Jessica knew that her employee was going to be out for a few days. As an hourly worker, paid time off was precious. Without this additional coverage to her other liability policies, Jessica would need to pay for the medical bills and lost wages for employees out of her own pocket. She now had a better understanding of how this insurance coverage protected business owners like her.
Liability Protection for Your Daycare
Jessica quickly saw that workers’ compensation isn’t just about covering employees—it also protects the daycare facility itself. If an employee were injured and the daycare didn’t have workers’ comp, the financial liability could be crippling from the legal repercussions. Lawsuits over workplace injuries can create significant financial losses, forcing difficult decisions about staffing, programs, or even the daycare’s ability to operate.
By investing in workers' comp, Jessica could shield her daycare from these potential risks. Daycare liability insurance isn't just about slips and falls for students in the play area. It is about the unforeseen risks that can happen for harm employees. For smaller business operations that rely on tight budgets, this insurance cost is a critical safeguard against unpredictable legal and medical expenses.
Jessica now realized that filing the claim rather than just paying out of pocket was the best idea for employee who was bitten by the two year old. Having the essential protections form any potential lawsuits that might happen was far more important trying to save a few dollars on insurance premiums.
Workers’ Comp Versus Health Insurance
While Jessica didn't need help wit this, we should clarify the difference between workers’ comp insurance and health insurance. Health insurance covers personal medical needs. It doesn’t extend to injuries or illnesses related to work activities. If Jessica's employee had gone to the emergency room by herself and they discovered the bodily injury happened at work, the billing would have been very different.
Most emergency rooms and urgent care centers will ask about the origin of an injury when you come in. They have been well trained by the insurance companies to ask these questions so that the liability can be properly assigned. Workers’ compensation provides job-specific protections that health insurance simply won't cover.
Customized Solutions for Texas Daycares
Ultimately, Jessica realized that workers’ compensation was a smart investment for her daycare facility in Austin. It provided protection for employees, reduced legal liability for the facility, and provided peace of mind that her business wouldn’t face unexpected financial strain from workplace accidents. This is a key part of a great daycare insurance package.
If you’re operating a daycare facility in Texas, working with an experienced insurance agent who specializes in daycare insurance can help you navigate these decisions. True Texas Daycare Insurance customizes policies to fit the unique risks of your daycare based on your operations. Insurance For Texans is the only place to find True Texas Daycare Insurance that helps you secure coverage that safeguards your employees, your business, and your peace of mind.
Click the button below to get workers’ compensation and other insurance options for your Texas daycare. Protect your business and the team that helps it thrive!