When someone is injured in an accident in Texas, one of the first questions they ask is: who is responsible for paying compensation? Medical bills, lost wages, and other damages can quickly create financial stress. Understanding who may be legally responsible for covering these losses is an important step toward recovery.

In Texas personal injury cases, compensation typically comes from the at-fault party or their insurance company. However, the specific source of payment depends on the details of the accident and the parties involved.

The At-Fault Party and Their Insurance

Texas follows a fault-based system for personal injury claims. This means the person or entity that caused the accident is generally responsible for the damages.

In many cases, compensation is paid through the at-fault party’s insurance policy. For example:

• In a car accident, the negligent driver’s auto insurance usually covers damages.
• In a truck accident, the trucking company’s commercial insurance policy may apply.
• In a premises liability case, a property owner’s liability insurance may cover injuries.
• In a workplace accident involving a third party, that party’s insurance could be responsible.

Insurance companies typically handle the investigation, negotiation, and payment of claims. However, they may attempt to limit the amount paid, which is why legal representation can be critical.

When the At-Fault Party Is Uninsured or Underinsured

Not every responsible party carries sufficient insurance. In car accident cases, Texas drivers are required to carry minimum liability coverage, but that coverage may not fully compensate a seriously injured victim.

If the at-fault driver is uninsured or underinsured, an injured person may seek compensation through their own uninsured/underinsured motorist (UM/UIM) coverage, if they have it. This coverage is designed to protect policyholders when the other driver lacks adequate insurance.

In some cases, it may also be possible to pursue the at-fault party personally, although collecting compensation directly from an individual can be challenging.

Employer Liability and Vicarious Responsibility

In certain cases, an employer may be responsible for the actions of its employee. Under Texas law, employers can be held liable if an employee causes an accident while acting within the scope of their job duties.

For example, if a delivery driver causes a collision while making deliveries, the employer’s commercial insurance may be responsible for paying compensation. This principle, known as vicarious liability, can significantly affect the amount of insurance coverage available in a claim.

Government Entities and Special Rules

If a government agency or public employee caused the injury, different rules apply. Claims against government entities in Texas are governed by the Texas Tort Claims Act, which places limits on when and how compensation can be recovered.

There are strict notice requirements and shorter deadlines when pursuing claims against a city, county, or state agency. Failing to follow these rules can prevent recovery altogether.

What Damages Can Be Compensated?

Compensation in a Texas personal injury case may include:

• Medical expenses (past and future)
• Lost wages and reduced earning capacity
• Pain and suffering
• Mental anguish
• Property damage
• In some cases, punitive damages

The source of payment depends on who is legally responsible and the insurance policies available.

How Legal Guidance Can Help

Identifying who pays compensation is not always straightforward. Multiple parties may share responsibility, and insurance companies often dispute liability or the value of a claim.

At Manfred Sternberg & Associates, we can provide legal assistance to the Houston public by investigating accidents, identifying all potentially responsible parties, and pursuing the compensation our clients may be entitled to under Texas law.

Understanding your rights is the first step toward financial recovery after an injury.