Insurance · Workers Compensation

Under workers' compensation, what is the 'exclusive remedy' doctrine?

Correct answer

Workers' compensation is generally the employee's EXCLUSIVE remedy for work-related injuries — in exchange for guaranteed no-fault benefits, the employee generally cannot sue the employer in tort

  1. A Employees can sue employers freely
  2. B Workers' compensation is generally the employee's EXCLUSIVE remedy for work-related injuries — in exchange for guaranteed no-fault benefits, the employee generally cannot sue the employer in tort
  3. C Employers have no obligations
  4. D Only employers benefit

Why this is the answer

EXCLUSIVE REMEDY DOCTRINE: The foundational trade-off of workers' compensation. EMPLOYEES receive: GUARANTEED, NO-FAULT benefits (medical care, wage replacement, disability) for work-related injuries — without proving employer negligence; EMPLOYERS receive: PROTECTION from most lawsuits — workers' comp is the employee's EXCLUSIVE REMEDY, so the employee generally CANNOT sue the employer in tort for the injury; THE GRAND BARGAIN: Employees give up the right to sue (and potential large jury awards) in exchange for certain, prompt benefits regardless of fault; employers accept guaranteed liability in exchange for protection from unpredictable lawsuits; EXCEPTIONS (where employees CAN sue): intentional employer acts; injury by a third party (can sue the third party); employer lacking required coverage; NO-FAULT: Benefits paid regardless of who was at fault (with limited exceptions like intoxication); the exclusive remedy doctrine is central to workers' compensation (a casualty line) and a key exam concept — guaranteed benefits in exchange for giving up the right to sue the employer.
Source: Casualty Insurance — Workers' Compensation, Exclusive Remedy

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