How soon must an insurer provide written notice before canceling a Workers’ Compensation policy?

The requirement for an insurer to provide written notice before canceling a Workers’ Compensation policy is a crucial aspect of regulatory compliance, ensuring that policyholders have adequate time to prepare for the cancellation. In Texas, the law stipulates that an insurer must give a written notice of at least 10 days prior to the cancellation of a Workers’ Compensation policy. This notice period allows policyholders to either address the underlying issues that may have led to the potential cancellation or to seek alternative coverage, thereby minimizing the disruption to their business operations and protecting their financial liabilities related to employee injuries.

In contrast, other time frames do not align with the legal requirements set out in Texas. A notice period of 5 days is generally considered too short, potentially leaving insufficient time for the policyholder to respond. Similarly, 15 days and 30 days exceed the statutory requirement and are not applicable in this context. Therefore, 10 days is the correct and legally mandated notice period for cancellation of Workers’ Compensation policies in Texas.