Basic differences between Workers Comp and Non Subscriber

In Texas, unlike any other state in the US, a business owner can opt out of Workers Comp and purchase a non-subscriber insurance policy covering employee injury. The essential difference between Workers Comp and a non-subscriber policy comes down to claim administration. If a business has a Workers Comp policy, and an employee has a work-related injury, the state of Texas administers benefits and follows the coverage details that have been penned in legal statutes. If the business opts out of Workers Comp and purchases a non-subscriber policy, the benefits for an injured employee would follow the coverage terms provided in the policy. Another major difference between the two coverages is 'sole remedy'. Essentially, under workers comp, an employee's only course of action after an injury is through the comp system. Non-subscriber policies don't provide this 'sole remedy', and the employee can take legal action against the employer if he/she doesn't feel like the benefits are being properly applied. The last key difference relates to price. Businessowners who opt out of workers comp often save between 25 and 60% on their premium. Non-sub policies offer these savings because they're able to drastically reduce fraudulent claims...it's far more difficult for an employee to take advantage of the system under non-subscriber policy provisions.

[davidrekerdres]

Small edit: the "Oklahoma Option" is similar to Texas Non-subscriber....so Texas may not be the only state that lets employers opt out of workers comp