After a job injury, you generally hope your employer’s workers’ compensation insurance will provide you with coverage. It is meant to give injured workers medical treatment, wage compensation, and other help without the need for legal action. But what happens if the company you work for doesn’t have workers’ compensation insurance? This situation may make workers feel lost, weak, and under financial stress. This is what you should know and how to safeguard your rights if this happens.
UNDERSTANDING WORKERS’ COMPENSATION REQUIREMENTS
Many states require employers to purchase workers’ compensation insurance when they hire a certain number of staff. The main goal of this system is to offer a balance: Injured workers get fast medical and payment for lost wages, without having to prove fault, and employers are generally safe from personal injury claims.
Even so, there are employers who, through forgetfulness, trying to save money, or not knowing the law, might fail to provide the necessary insurance. As a result, employees may face tough challenges in both law and money matters.
IS IT LEGAL FOR AN EMPLOYER TO BE UNINSURED?
Most states have laws that say employers who have a certain number of workers must have workers’ compensation insurance. Consequences of ignoring these laws may be harsh and include:
- Civil fines
- Criminal charges in some jurisdictions
- Personal liability for the cost of the worker’s injuries
- Closure of the business
When you are injured at work and your boss doesn’t have workers’ comp insurance, you shouldn’t think there’s nothing you can do about it. Actually, there are legal actions you may take to try to get compensation.
YOUR LEGAL OPTIONS IF YOUR EMPLOYER DOESN’T HAVE WORKERS’ COMP
Here are several potential paths you may be able to take:
- File a Personal Injury Lawsuit
Generally, workers’ comp laws make it so employees cannot file a lawsuit against their employer for work injuries. But if your employer doesn’t have the proper insurance, that immunity often is not available. You could initiate a personal injury lawsuit in order to get compensation that includes:
- Medical expenses
- Lost wages
- Pain and suffering
- Emotional distress
- Punitive damages (in egregious cases)
In contrast to workers’ compensation claims, filing a personal injury lawsuit means showing that your employer’s negligence caused your injury. Though it is tougher to prove in court, you could recover much more with a personal injury lawsuit than through workers’ comp.
- File a Claim with a State Uninsured Employer Fund
Many states have established special funds to help injured workers whose employers failed to carry workers’ compensation insurance. These funds are often referred to as “uninsured employer funds” or “special injury compensation funds.”
While the process for filing with these funds varies by state, they typically allow the worker to receive benefits similar to what would have been available under a valid workers’ compensation policy. The state may then pursue reimbursement from the employer.
- Report Your Employer to the State Authorities
When you find out your employer lacks the required workers’ compensation coverage, you should report it to the state’s workers’ compensation board or labor department right away. By reporting, you could set off an investigation, see some enforcement actions, and get aid from the state fund.
Keep detailed notes on your injury, your work duties, and any talks you had with your employer about workers’ comp. Having this information can be very helpful for your claim.
CHALLENGES IN PURSUING COMPENSATION WITHOUT WORKERS’ COMP
Although you might be able to try different methods, you should be aware of the issues with getting compensation if there’s no workers’ comp policy.
- Delays in Benefits: In comparison to workers’ compensation, which is quick and fault-free, lawsuits might take a long time to settle.
- Burden of Proof: In a normal workers’ comp case, you won’t have to show fault, causation, or damages like you do in a personal injury suit.
- Employer’s Financial Condition: Sometimes, winning a lawsuit against a financially unstable or small employer doesn’t guarantee you will get the money you are owed.
- Retaliation Risks: Even though it is illegal, some employers take action against workers who report wrongdoing or make claims. There are rules to protect you, but you may need a lawyer to help you use them.
THE IMPORTANCE OF LEGAL REPRESENTATION
If you suffer a job injury and see that your employer doesn’t carry workers’ compensation insurance, you should talk to a personal injury lawyer as soon as possible. An experienced lawyer can:
- Help you evaluate whether you have grounds for a lawsuit
- Determine if your state has an uninsured employer fund
- Assist you in gathering evidence and building a strong case
- Protect you from retaliation
- Maximize your potential compensation
Trying to go through these cases by yourself can be confusing, and you might not get all the benefits or the proper amount of compensation.
PREVENTING THE PROBLEM: KNOW YOUR RIGHTS AHEAD OF TIME
Even if you can’t always tell if your employer follows workers’ compensation rules, there are things you can do as an employee:
- Make sure to ask your employer personally about their workers’ comp coverage and get the name of their carrier.
- Look for posted notices (many states require employers to post proof of coverage in a common area).
- If you suspect non-compliance, consider making an anonymous report to your state labor department.
Knowing what you are entitled to and what your employer must do can make it easier for you to act promptly in the case of an injury.
CONCLUSION
If, after a workplace accident, you realize your employer is not insured for workers’ compensation, the situation can cause a great deal of worry. But that doesn’t prevent you from taking legal action. Depending on the laws where you live, you may file a lawsuit, use a state compensation fund, and hold your employer accountable for breaking the law.
If your employer have no insurance, that does not mean you cannot receive the healthcare and compensation you require. Get in touch with a personal injury lawyer who can walk you through what to do and help you get the compensation you need.