Part 2 of 3: The Two Primary Advantages to “Opting Out” of the Texas Workers Compensation System

Several benefits are available to employers who choose to become non-subscribers but they all involve two primary benefits:

1. Employers often see a significant cost reduction by becoming a non-subscriber. Once an employer opts out of worker's compensation and develops its own employee injury benefit plan, the employer is able to avoid paying workers’ compensation premiums, which can result in a huge cost reduction for the employer.
2. Employers' individual employee injury benefit plans can often provide benefits that exceed those provided under Texas workers compensation. This is because employers have more control over their individual plans and how job-related injuries are reviewed and compensated.  Individual employee benefit plans allow employers to better control fraudulent claims, which are often the reason workers' compensation premiums become unmanageable.