Texas Workers Compensation Insurance for Food & Beverage Businesses
If you run a food or beverage business in the Lone Star State, workers compensation insurance can cover the cost of your employees’ work-related injuries and illnesses.
Learn more about what this essential coverage can do for you and how you can get your free quote online from Food Liability Insurance Program (FLIP)!
What Is Workers Compensation Insurance in Texas?
Texas workers compensation insurance is designed to function in two ways:
- It offers financial support for your employees if they are injured on the job or develop a work-related illness
- It protects you if your employee sues you over a workplace injury or illness
Your employees can only receive workers compensation benefits if you have a workers compensation policy from a private insurance company or self-insure your business. If your business is self-insured, you commit to covering the cost of the coverage yourself.
On the other hand, if you do not have workers compensation insurance and are not self-insured, your employees are not eligible for benefits.
The Texas Department of Insurance’s Division of Workers Compensation (DWC) oversees all workers compensation claims. It provides resources to employers and employees to help them navigate benefits and avoid workplace accidents.
Who Is Required to Have Workers Compensation Insurance in Texas?
Texas does not require most private employers to carry workers compensation insurance. However, it is strongly recommended to avoid paying out-of-pocket for any employee injuries or illnesses.
In Texas, workers who meet the following criteria are typically considered employees:
- They work for you, not for another company contracted to do work for you
- They receive a paycheck from you with tax withholdings
- They receive a W-2 from you
Are Independent Contractors Covered Under My Texas Workers Compensation Policy?
Independent contractors are not considered employees in Texas, so they would not be covered under your workers compensation policy. If they want to be eligible for benefits, they can buy a policy for themselves.
It’s fairly common for employers to mislabel their employees as independent contractors, whether by accident or on purpose. This is illegal, regardless of whether you meant to or not. If you’re unsure if your workers are considered independent contractors, speak with an attorney.
Which Food and Beverage Businesses Need Workers Compensation Insurance in Texas?
If you have employees on your payroll, workers compensation insurance helps you do right by them by ensuring money is available to cover work-related injury expenses.
This includes owners of the following types of food and beverage businesses.
If you own one of these businesses, you are eligible for a free online workers compensation quote from FLIP! If you run a different type of food or beverage business, please contact us for more information about who qualifies. One of our licensed, non-commissioned agents will be happy to help you!
How Does Workers Compensation Insurance Work in Texas?
Because workers compensation insurance is voluntary in Texas, businesses with workers compensation coverage are called “subscribers,” and those that don’t are called “non-subscribers.”
Some non-subscribers apply for a certificate of authority to self-insure, meaning they will cover all workers compensation claims with their own funds. However, they are still considered non-subscribers under Texas law.
If you choose not to carry workers compensation insurance, you must report this to the state of Texas. If you do have coverage, your policy consists of two parts:
- Part One: Workers Compensation
- Part Two: Employers Liability
Part One: Workers Compensation
The first part of your policy is designed to cover the cost of Texas’ workers compensation benefits for your employee after they suffer a work-related injury or illness.
While other insurance policies have standard coverage limits, this part of your policy doesn’t because it covers the cost of benefits required by Texas law.
Part Two: Employers Liability
The second part of your policy is designed to cover you if your employee sues you over something not covered by workers compensation benefits.
While workers compensation benefits are designed to help decrease the need for employees to sue their employers when they’re hurt at work, it can still happen. For example, your employee may seek compensation for something that isn’t covered by these benefits.
This part of the policy does have standard limits, unlike Part One. FLIP’s workers compensation policy has employers liability limits of:
- $1,000,000 aggregate (per policy)
- $1,000,000 occurrence (per claim)
- $1,000,000 per employee
In the event your employee sues you over a work-related injury, FLIP’s policy would cover up to $1,000,000 for a single claim per employee. If you were hit with multiple lawsuits within the same policy year, it would cover up to $1,000,000 for all claims (aggregate limit).
What Business Information Is Needed for a Texas Workers Compensation Quote?
To get your free workers compensation quote from FLIP, you need to provide:
- Your business type (food truck, home-based bakery, etc.)
- Your Federal Employer Identification Number (FEIN)
- Your phone number
- Your business address
- Your employee payroll
- Your owner/office payroll (if you want to be included in the coverage)
Note: While filling out your application, please select the type of business that most accurately describes yours. Choosing the wrong type of business could affect your ability to get an accurate quote and cause you to wait longer to get insured.
How Long Does It Take to Get Insured in Texas?
Most food and beverage businesses can get an online workers compensation quote from FLIP in 10 minutes.
However, every business is different, and some need extra attention from an underwriter to receive an accurate quote. If your business isn’t eligible for an instant online quote, we will notify you during the application process. After you submit your application, one of our underwriters will start preparing your quote with the information you’ve provided.
How Much Does Workers Compensation Cost in Texas?
The cost of Texas workers compensation insurance can vary widely based on these factors:
- The type of business you run (affects the kinds of risks your employees are exposed to)
- Your employee payroll
The Texas Department of Insurance then uses these factors to determine workers compensation rates, which change annually.
During your first policy year, FLIP estimates your workers compensation premium based on the information you provided in your application and Texas’ rates. At the end of that year, we will audit your premium to ensure it’s accurate and you aren’t paying too much (or too little).
If your premium isn’t accurate, you will either receive a refund or a request for additional premium to make up the difference.
What Are Some Common Workers Compensation Claims in Texas?
Some of the most common workers compensation claims for Texas food and beverage businesses include:
- Scalds and burns
- Example: One of your cooks accidentally splashes hot grease on themselves and requires medical attention and time off to heal their burns
- Hazardous material exposure
- Example: One of your employees is using bleach to sanitize a surface and gets chemical burns despite wearing gloves
- Slip-and-fall injuries
- Example: One of your catering servers slips on a wet surface while working an event and sprains their ankle
- Cuts and lacerations
- Example: An employee needs stitches and time off work after slicing open their hand while peeling an apple
- Repetitive stress injuries
- Example: One of your employees develops a back injury from years of repetitive motion lifting heavy boxes in and out of your food truck
What Does Workers Compensation Insurance Cover in Texas?
Texas grants employees the following workers compensation benefits (if you have insurance):
- Medical: Covers reasonable, necessary medical costs to care for and treat the employee’s injury or illness
- Income: Can replace some of your employee’s lost wages and includes temporary income benefits (TIBs), impairment income benefits (IIBs), supplemental income benefits (SIBs), and lifetime income benefits (LIBs)
- Death: Offers financial support to the employee’s surviving spouse and dependents after a work-related death
- Burial: Pays for some of the employee’s funeral costs after a work-related death
What Workers Compensation Doesn’t Cover
Texas workers compensation does not cover employees who:
- Injure themselves intentionally
- Suffer injuries outside of work (including voluntary participation in work social events or sports activities)
- Are injured at work while intoxicated
- Are injured while playing around at work (e.g., roughhousing and not performing their job duties)
- Are injured in a hurricane or other natural disaster (unless their job exposes them to these risks)
Why Choose FLIP for Workers Compensation Insurance in Texas?
FLIP makes it easy for Texas employers to support their employees and shield themselves from liability with workers compensation insurance catered to the food and beverage industry.
Here are just a few perks you can expect when you choose FLIP for your workers compensation needs.
Painless Online Process
Most business owners can get workers compensation insurance from FLIP 100% online — no need to speak with an agent (unless you want to).
Flexible Payment Plans
You have the freedom to choose between paying an annual, quarterly, semiannual, or monthly* premium for your workers compensation coverage.
Customizable Coverage
Easily bundle your workers comp policy with general and product liability for well-rounded protection. Personalize it with optional add-on coverages, too!
Peace of Mind
Don’t let a workplace accident lead to unnecessary lawsuits and financial stress. Workers compensation insurance is designed to cover your employees (and you) if a work-related injury occurs.
*Monthly payments are only available for policies exceeding $1,000 per year.
What Our Customers Are Saying
Find out what other food and beverage business owners have to say about their experience with FLIP from 300+ available reviews!
If you don’t have workers compensation insurance, your employee(s) cannot collect benefits if they are injured on the job. This leaves you vulnerable to lawsuits and will cost you more out of pocket than the amount you pay for a workers compensation premium.
If you don’t have workers compensation coverage in Texas, you are legally required to do the following:
- File a notice each year with the DWC stating that you are uninsured
- Post this notice in your workplace(s)
- Provide new employees with a statement in writing that they are not covered by workers compensation
- Your employee should report the injury or illness to you within 30 days of it happening or the first date they noticed it
- Give your injured employee a workers compensation claim form (DWC Form-041)
- Your employee must submit the completed claim form to the DWC within one year of the date of injury or the date they noticed the injury
