1. What is Texas nonsubscription?

   Texas nonsubscription is the action by an employer of rejecting, or opting out of, the Texas Workers' Compensation System. In its place, an employer establishes its own ERISA Benefit Plan to address workplace injuries.

2. How long has Texas nonsubscription been available?

   Nonsubscription has been an option in Texas since 1913 and is an established business practice.

3. Can an employer return to Workers' Compensation once it has nonsubscribed?

   Most employers recognize the savings and advantages offered by nonsubscribing; however, some employers may have reasons to return to workers' compensation and are free to do so at any time.

4. Does the whole company opt-out, or only Texas workers?

   Only Texas workers opt-out. The workers in the other states remain in their respective workers' compensation programs.

5. What are the characteristics of a good nonsubscription candidate?

   A good candidate is an employer who has employees in Texas, is interested in providing the best possible medical care for its workers, who cares about safety, and has some claim frequency in Texas. It should not be a public entity such as a municipality, state or federal government, or school district. Additionally, it should not be a contractor doing construction with the State of Texas.

6. Why would we want to consider nonsubscription?

   Nonsubscription can help if:

   • Your workers' compensation collateral requirements are high
   • You are looking to provide the best medical care to workers
   • You care about worker safety
   • You are trying to keep jobs in Texas (and hence, in the U.S.)
   • You value high employee satisfaction
   • Saving money is important

7. Are the savings quantifiable?

   Yes, especially for larger employers with statistically valid figures. We provide a FREE savings estimate. To proceed with your free savings estimate, please contact Russell Huber at 214-239-4590 or email rhuber@partnersource.com.

8. What are the risks?

   Nonsubscribers have a broader definition of liability exposure, and they lose the exclusive remedy of workers' compensation. Nonsubscribers are, therefore, incented to provide the best possible medical care for their workers and to provide a safe workplace. PartnerSource has a proven approach that assists employers with effectively managing and insuring the nonsubscription exposure.

9. Are nonsubscriber risks insurable?

   Yes. Many large workers' compensation carriers offer nonsubscription policies for this large segment of the Texas population. Most of these policies are surplus forms, and they vary from carrier to carrier. PartnerSource provides assistance in matching nonsubscription policies to each employer's needs.

10. Where do the savings come from?

    The savings come from:
    • Improving medical outcomes
    • Encouraging return to work
    • Eliminating fraudulent claims

    We are pleased to discuss the savings potential in more detail.

    Please contact Russell Huber at 214-239-4590 or rhuber@partnersource.com.

11. What are common nonsubscription industries?

    Common nonsubscription industries include:

    • Facility Management
    • Food Processing
    • Healthcare
    • Hospitality
    • Hotels
    • Logistics
    • Manufacturing
    • Retail
    • Restaurants
    • Retirement Facilities
    • Transportation
    • Warehousing
    • Etc.

12. Must we or should we nonsubscribe on the workers' compensation renewal date?

    No. An employer has the flexibility to nonsubscribe at any time of year that is convenient. Less than 50% of our clients nonsubscribed on their workers' compensation renewal dates.

13. What about unions?

    We have worked in numerous union environments with mutually beneficial results for union personnel and their employers.

14. What size employers opt-out?

    All sizes.

15. How long is the lead time to set up a program?

    It varies by the employer's size and complexity. Typical design and implementation timeframe targets are 3 to 6 months.

16. Does PartnerSource work with other brokers?

    PartnerSource partners with brokers and consultants across the United States. Since 1994, we have provided comprehensive nonsubscription services to complement the efforts of traditional property and casualty brokers and consultants.

17. If we want to proceed with nonsubscription, what comes next?

    Contact Russell Huber at PartnerSource at 214-239-4590 or email rhuber@partnersource.com for more information.

Download the FAQs in pdf format.