Will Pursuing Legal Action Against My Workers Comp Insurance Affect My Employment?

Workman's Comp insurance is just like any other insurance policy. Your employer obtains one that meets their legal requirements and this is usually the end of the connection. An unresolved issue that leads you to take legal action against the insurance company could have no impact on your employment. However, if such legal action affects your employment, it's a sign that there might be more reasons to seek legal advice.

Implications for Coworkers

While the law dictates that pursuing legal action shouldn't affect your employment, human nature can sometimes override this. People in your company who were affected by the issue, especially if they were directly involved, may view you unfavorably. This negative perception can have lasting effects on your relationship with your colleagues and could impact your future with the company in a negative way.

The Connection Between Legal Action and Employment

Generally, the provider of Workers Comp insurance—whether state-sponsored or private—is relatively removed from your employer, and this is typically where the issue doesn't impact your employment. However, there are scenarios where legal action might affect your employment, especially when it comes to the cost of insurance or how your employer is viewed in terms of liability.

Cost Implications and Liability

When you file a claim against your employer, the Workers Comp insurance provider settles it. But if the issue escalates to the insurance company, there might be additional costs involved. The cost of insurance can go up, and your employer may be found partially liable, leading to claims that 'it shouldn’t affect your employment.' However, if an employer admits this or takes action against it, it can still be a valid concern.

In the end, while legal action against a Workers Comp insurer doesn't necessarily affect your employment, it's crucial to understand the broader implications and to seek legal advice if necessary. This can help in navigating the complexities of workplace claims and protecting your rights.