Workers compensation laws enacted in the United States have roots that date back to 2050 B.C., where the law of Ur provided workers with compensation for injuries. Of course, the modern day, western version of workers compensation is much different and more elaborate, but the premise remains the same; workers are protected from on-the-job injuries and injuries stemming from performing their job functions. 

Essentially, workers compensation was established to protect both businesses and workers. It allows workers to receive medical benefits and weekly payments after they are injured on the job. Workers compensation shields businesses from being sued and paying large sums in settlement monies resulting from on-the-job injuries. In addition to limiting lawsuits, the law eliminated the need to demonstrate fault for employees. If an employee is injured, they have a right to file a claim.

Workers Compensation Doesn't Completely Protect You from Lawsuits

Many business owners falsely assume that workers compensation laws prevent them from being sued by workers. In fact, depending on the type of injury, workers can still sue their employers. The following are a few scenarios in which an employee may be permitted to sue their employer:

Injuries resulting from defective products from the company

Injuries from toxic chemicals

Personal injuries in which the employer acted intentionally or egregiously

With the possibility of being sued beyond workers compensation, businesses must ensure that they plan accordingly and secure their business using a variety of insurance products.

How to Protect Your Business from Lawsuits

Lawsuits are basically a product of causing harm. If you want your business to remain free and clear of legal woes, then you will need to adopt measures that reduce the chances of your employees being harmed. Specifically, you should cover those areas where employees can sue in spite of the availability of workers compensation insurance.

Additionally, you must protect your business financially. Even if you decrease risks, you could still be sued. People file frivolous lawsuits all the time. Unfortunately, this costs your business. You can offset these costs by having appropriate business insurance policies in place. For instance, some types of business insurance may cover court costs and legal fees. 

Simply because you have workers compensation, you are not completely shielded from lawsuits from your employees. You should examine potential legal risks and adopt measures to remove the financial threat to your business. Additionally, purchasing business insurance may help you cover some costs associated with fighting unfounded lawsuits.