Nonsubscription in The State of Texas
How to Manage Injuries and Costs

INTRODUCTION
The State of Texas offers a unique opportunity for employers to opt out of the Workers' Compensation System. This nonsubscription election allows companies to reject the state-run program. The only requirements to take this approach are some limited reporting and posting of notices. The one drawback is that once you make that election, you give up your right of protection from lawsuit. However, the smart employer will be responsible in structuring a program to pay lost wages and medical treatment. This program should be structured through a qualified ERISA plan designed to clearly identify benefits, procedures, and system administration. Additionally, protection from lawsuit comes in many other forms. Many well-known companies, either with part of their operation or fully based in Texas, have experienced great success by reducing claim loss, reducing insurance premiums, and increasing the bottom line, while taking care of injured workers and getting them back to work.

SUMMARY OF THE NONSUBSCRIPTION PROGRAM
A responsible program is developed to identify all procedures, finalize specialists, and develop time frames for such. It is imperative that all employees are familiarized with the program, trained in safety procedures, and advised where detailed information is available for them. The handling of claims must be timely and professional to the benefit of the employees and the employer.

AVAILABLE RESOURCES

	Establishes medical treatment procedures, wage continuation benefits, waiting periods, eligibility requirements and appeals process.
	Explains the procedures, rules, limitations, and responsibilities in the Plan.
	Identifies plan administrator and communication vehicle for injured workers.

INSURANCE ALTERNATIVES FOR NONSUBSCRIBERS
Insurance for nonsubscribers is available through numerous liability-based products designed for large Self Insured Retention plans as well as low-deductible needs.

	Approved Medical Treatment
	Lost Time Wages
	Legal Defense of a Claim
	Judgments and Awards
Following are alternative coverages:
Employer's Excess Indemnity Coverage:
	High self-insured retention over $100,000
	High policy limits up to $10,000,000
	Requires safety and claims management and ERISA
	Covers medical bills, lost wages, negligence liability, and legal costs within policy limits
Combined Single Limit Underlying Coverage:
	Underlying coverage up to $500,000
	Low deductible for $1,000 and up
	Includes ERISA
	Covers medical bills, lost wages, negligence liability, and legal costs within policy limits