Workers' Compensation

Under Texas law, restaurants have two options for insuring employees:
The workers' compensation system -- described below.
The tort system -- operates with unlimited damages and without common law defenses in handling employee injuries. Employees may not sue covered employers for damages for personal injuries sustained while working, except in cases of gross negligence.

Flat cost, dividend and retrospective programs
Money-saving insurance options
Insurance Audit
Policy Cancellation
Coverage
Reporting
Claims
Benefits
Workers' Compensation Insurance programs

Within workers' compensation insurance are three plans - flat cost, dividend and retrospective. Each plan offers different advantages depending on your business, accounting methods and coverage preference.

In any plan, the premium is based on the type of work your employees do, the number of employees you have and your past losses. Limiting dangerous conditions and implementing an effective program to prevent injuries will, over time, lower your premium payment.

Flat-cost programs - have a set premium for the term of the coverage regardless of losses or claims.
Dividend programs - have a standard up-front premium. Money is refunded if losses are lower than the rate expected. (See "Purchasing Groups" for TRA's Dividend program.)
Retrospective plans - have an up-front premium but if losses are higher or lower than expected you may be refunded or charged more at the end of the term.
Consult an insurance agent to help select the plan that's right for you.