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The Supreme Court of Texas recently announced it will no longer allow negligence claims against policyholders, in light of the recent Port Elevator-Brownsville v. Casados case, which determined employers cannot split their insurance policies to only cover some of their employees.
Due to the ruling, workers' compensation insurance is available to all employees of a business that has a workers' compensation insurance policy.
"This decision is great for Texas workers because it assures them that they will be covered, and it reinforces a longstanding workers' compensation rule," said Mary Barrow Nichols, senior vice president for a Texas-based insurance company.
Before this ruling by the Supreme Court of Texas, a court of appeals awarded nearly $3 million to the family of a temporary worker who working for Port Elevator, which led to a lawsuit, due to confusion as to whether the employee was covered by workers' compensation insurance.
More news regarding workers compensation in Texas comes from the Texas Department of Insurance, which recently approved 13 renewals of the Certificates of Authority for companies to use self-insurance for their workers' compensation claims, reported Insurance Journal.