Can an employee sue my business if I have workers comp?
Can an employee sue my business if I have workers compensation insurance?
In short, yes, they still can.
Workers Compensation is offered on a no-fault basis, meaning that the employee doesn't need to prove that any negligence occurred on the part of the employer. Once an employee accepts compensation under Workers Compensation, the worker also gives up the right to sue the employer.
However, if the loss is not covered under Workers Compensation or the worker does not agree to the compensation offered under Workers Compensation, then the injured worker can sue the employer to recover any damages incurred. Employers should consider purchasing Commercial Liability Insurance to provide coverage for such cases.
See An Intro to Workers' Compensation to learn more.
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Jacques grew up around the insurance industry and began actively participating in 2013. Since then, he has gotten a Level 2 license, won Insurance Council of BC awards in 2015 and 2020 for academic excellence in the insurance licensing courses. He educates insurance professionals through PNC Learning and as a Thought Leader at ReFrame Insurance.
In his day job as an insurance broker, he helps businesses with creative risk management solutions and strategic advice when it comes to insurance.[Read full bio]