Workers’ comp insurance was established to reduce the number of lawsuits brought against businesses by injured employees. Federal and state laws require employers to take responsibility for employee injuries, even if employee actions caused the injury. The liability, regardless of who or what is at fault, is somewhat limited, in that while the insurance plan may pay for the injury and subsequent needs, employees aren’t usually able to file a personal injury lawsuit. However, there are some exceptions to this generalization where employees can sue an employer.
Potential Lawsuit Allowances for Injuries
There isn’t a book of lawsuit exceptions for those looking to challenge their employers in court over an injury, but there are situations that could lead to filing a lawsuit against the employer. Many of these circumstances have to be evaluated by the location of the injury, as the workers’ comp coverage only extends to injuries that occur while on the job. If an employee is running an errand for the company and get injured in an automobile accident, a claim under workers’ comp might be denied. In this case, a lawsuit may be necessary.
Injuries that occur outside the normal scope of business operations, such as a sprained ankle on a client golf outing or back injury on a company retreat, may be entitled to compensation from the company. These are case-by-case scenarios that could lead to denied claims from the insurance coverage, in which case a lawsuit could be used to obtain injury-related compensation.
Little to No Insurance Coverage
While the laws mandating workers’ comp coverage are rigid, there are some exceptions. Companies that meet a certain size or employee threshold may not be required to provide coverage or have more lax policies on the type of allowances. For those who work with a company where there is no coverage or the coverage is insufficient, employees may hire a lawyer and try to recoup their loss through the legal system. Claims of company negligence are also litigation problems filed by employees, as employees are able to sue a company for acts of intentional harm.
Litigation for Denied Workers Comp Claims
Even if an employee’s claim is denied under workers’ comp, they are not able to file suit in court. Instead, employees must move through an administrative agency in the state overseeing workers’ compensation claims and file an appeal. This could lead to an appeals board making the final decision for claim approval.
Expenses of Injury Litigation
When an employee is allowed to use the court system to gain injury-related compensation, the payout thresholds aren’t the same as what is included in a workers’ comp policy. Employees can sue for more than lost wages and reimbursement for medical treatment. A robust workers’ compensation policy isn’t just a mandate-it’s financial protection for companies from the high costs of litigation.
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.