Vermont law requires that most employers carry workers’ compensation insurance. Even if the business only has one part-time employee, they need to purchase a policy to cover work-related injuries. In this tough economic climate, however, some companies might refuse to buy a policy or just outright cancel it to save money. Other small business owners are oblivious of their legal obligations, so they neglect to buy a policy as required by law.
When you are hurt on the job, workers’ compensation should cover your medical care and lost wages. But what happens if your employer doesn’t have a policy or they are not self-insured? Contact Larson & Gallivan Law to discuss your situation. OurVermont workers’ compensation lawyer can provide an overview of your options in greater detail.
Employer Penalties for Failing to Buy Workers’ Compensation Insurance
The state will penalize a company for failing to provide workers’ compensation. The penalty starts at $100 a day and increases to $150 a day once notified by the state. In extreme situations, the state might issue a work stop order for failure to buy workers’ compensation insurance.
If the worker is injured and sues, then the officers and partners of a business might be personally liable to the injured victim. That is a dramatic remedy. It means that an injured worker can essentially gain access to a business owner’s personal bank account or other personal assets to help cover their benefits.
Filing a Claim with the State
This is an option for many injured workers who are hurt when their insurer should have purchased workers’ comp but didn’t. The state will review whether you should receive workers’ comp benefits. Work closely with a lawyer.
Bringing a Civil Lawsuit
Another option is to sue your employer in civil court for the accident which injured you. Typically, workers’ compensation prevents workers from suing an employer, but this bar doesn’t apply if your employer is uninsured.
Typically, we bring claims for negligence, which means the failure to use reasonable care. An employer might have been lax in following state and federal guidelines for worker safety. For example, they might not have constructed scaffolding as required by law. As a result, you are hurt in a fall, collision, or explosion. Or you pick up an occupational illness, such as a respiratory illness, because your employer did not properly ventilate the workplace.
Typically, we rely on witnesses to establish how the accident happened. Your place of employment might also have security video which shows the accident. Once we pinpoint the hazard which injured you, we can sue your boss.
Vermont has made it easier for injured workers to win a personal injury case against an employer who is uninsured. In fact,12 VSA § 618(b) changes personal injury law in several ways that benefit workers.
How Vermont Makes It Easier for Workers to Win Lawsuits
In the typical personal injury case, the victim has the burden of proving negligence and causation. You must show the defendant did not act with sufficient care and this lack of care caused your injuries.
But Vermont has changed the law if an employer did not buy workers’ comp and is sued by an injured employee.
- Burden shifting. Your employer will have the burden of proving the injury did not result from their negligence. They also have the burden of disproving their negligence was a proximate cause of your injury.
- Prohibited defenses. Your employer cannot defend themselves by blaming a coworker for injuring you. They also cannot allege a worker assumed the risk of injury.
- No comparative negligence. The state also prohibits your employer from arguing the worker was also negligent in most situations.
You will have three years to file a lawsuit for compensation.
12 V.S.A. § 687 also lets workers pierce the corporate form and reach the personal assets of a company’s officers, majority stockholders, or partners. In the typical lawsuit, only the company’s assets are at risk. That means that a winning plaintiff will try to access the company’s bank account.
But this law puts the business owners’ personal assets at risk. You can force the business owner to personally pay compensation.
The law also gives an injured worker the right to file a lien on the business’s property or on the personal property of any officer or business owner. This line helps secure a right of payment.
For example, you could put a lien on the company building or on equipment and force a sale. This lien is useful especially if your employer is with a small business with little cash in the bank. A lien on accounts receivable or equipment might be the only way to get compensation.
Discuss Your Options Today
If your employer did not buy workers’ compensation or self-insure, then you have some choices to make. Bringing a personal injury lawsuit might be the best option for receiving fair compensation to cover medical bills and lost income.
Larson & Gallivan Law has developed a deep personal injury practice along with our experience in workers’ compensation. We can handle your case from start to finish. We will discuss which is the best way to proceed.
Call us today. We can discuss the best method of obtaining compensation for an on-the-job injury.
Speak with a Vermont Workers’ Compensation Lawyer
There is no excuse for employers failing to buy required insurance. Workers’ comp helps protect workers by making medical care immediately available in a no-fault manner. Unfortunately, companies that refuse to buy a policy leave workers in a lurch.
Speak with the legal team at Larson & Gallivan Law today. We know how to navigate the complex workers’ compensation system on behalf of injured workers. Our firm can develop an initial application or bring an appeal if you were initially denied. We can also file a personal injury lawsuit on your behalf, if that is the route you choose. Our consultations are free and without any obligation on your part.
