What if My Employer Doesn’t Have Workers’ Comp Insurance?

Most employers in North Carolina are required by law to carry workers’ compensation insurance to protect employees injured on the job. But not all of them have the required coverage. And sometimes, a worker is not eligible for workers’ compensation benefits even when the company they work for has workers’ comp insurance.

So, what happens if you’re hurt at work in that situation? While the company might face fines and other sanctions for failing to live up to their obligations to employees, those consequences don’t provide assistance to you when you need medical care and benefits to make up for wages lost due to your inability to work. However, an experienced attorney may be able to help you pursue other remedies, and in some situations, you may be eligible to receive much more than you would through a workers’ compensation claim.

Your Employer May Be Subject to a Personal Liability Claim

The workers’ compensation scheme in North Carolina sets up a compromise situation for employers and employees when it comes to workplace injuries. Employers are expected to purchase (or provide through self-insurance) coverage that pays limited benefits to injured employees. These benefits are supposed to be paid for workplace injuries, regardless of the cause of those injuries (unless the employee was doing something really wrong, such as working while drunk). The program prevents employees from having to file a personal injury lawsuit and demonstrate negligence on the part of the employer.

In theory, this makes it easier for employees to receive benefits. Instead of having to invest effort into proving that the employer did something irresponsible that caused the injury, the injured employees only need to prove that their injury occurred on the job.

However, the workers’ compensation process causes problems for employees in many ways. First of all, instead of providing medical care and wage benefits to injured employees, insurance companies often deny claims and require workers to go through legal action to get benefits. Collecting workers’ compensation can become as difficult as filing a personal injury lawsuit.

Second, workers’ compensation benefits are extremely limited compared with what is typically available through a personal injury lawsuit. So while employers may grumble about paying for workers’ comp insurance and many of them try to avoid their legal obligation to provide coverage, the scheme generally tends to benefit and protect them far more than employees. Workers’ compensation is considered an exclusive remedy. Employees don’t have the option of filing a lawsuit in most cases if their injuries are covered by workers’ compensation.

However, when the employer does not have workers’ compensation or a self-insurance plan, the employer loses the protection of the exclusive remedy limitations. Injured employees then generally have the ability to file a personal injury lawsuit for their losses, and they may be able to recover substantially more.

Damages Available in a Personal Injury Lawsuit vs. Benefits Provided Through Workers’ Compensation

When your on-the-job injury is covered under workers’ compensation, the insurance company will pay for specified things after you’ve been approved for benefits. They will cover the cost of your medical care if you receive that care from a provider approved by the employer. And they will pay indemnity benefits to make up for some (but not all) of the income you’ve lost because of your inability to work. The most you can receive is usually 2/3 of your average weekly income. If you end up with a permanent disability because of your work injury, you may get extra amounts for a while, but it is usually not enough to make up for the abilities you’ve lost and the pain you’ve suffered. Workers’ compensation provides no compensation for your mental anguish, pain, and other impacts the injury has had on your life.

But if you are able to recover damages through a personal injury lawsuit, the outcome is very different. In a personal injury claim for a serious injury on the job or work-related illness, such as mesothelioma, you may receive compensation to cover a wide range of losses and to meet future needs. For instance, if you’ve suffered electrical burns at work, you can receive compensation for not only your medical care and the full amount of wages you’ve lost due to the inability to work but also amounts to provide justice for factors such as pain and disfigurement.

Potential damages available through a personal injury lawsuit include amounts for:

• Past medical expenses
• Future medical care, including rehabilitation
• Special equipment or modifications to the home
• Wages lost in the past
• Anticipated reductions of earnings in the future
• Pain and suffering (past and future)
• Emotional distress
• Loss of enjoyment of favorite activities
• Inconvenience

When a workplace injury causes a wrongful death, family members may be able to receive compensation for factors such as the loss of care, guidance, and affection from the deceased worker, as well as the economic losses suffered. The amounts for these factors are often much greater than those provided through workers’ compensation indemnity benefits.

Evidence is Crucial if You Need to File a Personal Injury Claim Against Your Employer

So, the news is not necessarily bad at all if your employer doesn’t have workers’ comp insurance. However, you will need to work harder to establish your claim for damages if you need to recover through a personal injury lawsuit. Your legal team will need to prove that your employer failed to live up to a responsibility they owed to you and that the lack of responsible action is what caused your injuries.

It requires considerable evidence to prove liability, and evidence becomes harder to locate as more time passes. So, it is best to talk to an injury attorney as soon as possible after a workplace accident, either to help ensure that your workers’ compensation claim is handled properly or to start gathering evidence of liability to prepare for a personal injury lawsuit.

At Martin & Jones, our dedicated legal team fights to ensure that injured workers recover the maximum compensation available through either type of claim, so we are ready to help you on the road to your best recovery. Get started now by calling 800-662-1234 or contacting us online for a free case evaluation and consultation to get started.