Are You Covered by Workers Compensation Insurance?

For many employers, workers compensation insurance is required by law. Workers compensation protects both the employer and the employee. Employers who provide their employees with workers compensation are agreeing to cover medical bills and lost wages for their employees if they are injured on the job. In exchange, employers are not able to sue their employers for negligence (in most cases). But, is workers compensation enough for businesses? a man in a leg cast

Can Employees Sue Beyond Workers Compensation Claims?

A lawsuit is a big financial risk for businesses. With larger settlements and more lawsuit filings, employers must wonder whether workers compensation insurance is enough.

When it comes to on-the-job injuries, workers compensation insurance helps cover employers, without them being concerned about lawsuits. The tradeoff between an employee’s right to sue and the employer paying for medical bills and lost wages remedies potential lawsuits resulting from on-the-job injuries.

Workers Compensation Doesn’t Cover all Aspects of Employee-Employer Suits

Although workers compensation prevents potential lawsuits from injuries, it doesn’t insulate employees from other types of lawsuits from employees. For instance, employees can sue for wrongful termination if an employer mishandles their termination. Although many employees are at-will, inferences of a contract by the employer could constitute a wrongful termination.

Retaliation is another way employees can sue their employers. Both state and federal laws prevent employers from retaliating against employees. Retaliation isn’t always termination. There are a number of measures an employer can take that constitutes retaliation, including:

Demotion
A separation from other employees

Undermining a workers compensation claim
Disciplinary actions that are unjust

The list above isn’t exhaustive. There may be a few other measures that constitute retaliation.

Discrimination is another way employees can sue their employers. Employees who feel they have been discriminated against on the bases of national origin, gender, religion, disability or age can bring a case before the courts.

Purchasing Complement Insurance Products

Much like workers compensation insurance, there are other types of business insurance that help businesses cover financial losses. For instance, general liability is a complement insurance policy that may help some businesses cover their court costs. Additionally, umbrella insurance can help provide financial protection for large lawsuits.

Workers compensation insurance is simply a start when it comes to protecting businesses. Most businesses need an array of business insurance products to ensure they can survive an employee lawsuit.

Protect your business and staff. Call Diamond Insurance Group, Inc. at 903-891-4646 for more information on workers compensation insurance.

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