Ask Regina

Q. We have an insured who is self-insuring workers’ compensation and paying all their reginaemployees claims, but they are not approved by the Texas Department of Insurance as a Certified Self-Insurer. Are there any penalties for not being a Certified Self-Insurer?

A. According to the Texas Department of Insurance website on Certified Self Insurance, workers’ compensation is not mandatory in Texas. Companies that use the term “self-insured” to describe their workers’ compensation coverage status are considered a non-subscriber under the Texas Labor Code if they do not hold a Certificate of Authority.

For more information on the being a non-subscriber/rejecting workers’ compensation, see Rejecting Workers Compensation Insurance on InfoCentral.

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