Insurance · Workers Compensation

What does the 'exclusive remedy' doctrine mean in workers compensation?

Correct answer

In general, workers compensation benefits are the employee's sole remedy against the employer for a work-related injury, meaning the employee usually cannot also sue the employer in court for negligence

  1. A Employees can always sue their employer
  2. B In general, workers compensation benefits are the employee's sole remedy against the employer for a work-related injury, meaning the employee usually cannot also sue the employer in court for negligence
  3. C It excludes all benefits
  4. D It applies only to managers

Why this is the answer

The exclusive remedy doctrine is the trade-off at the heart of workers compensation: in exchange for receiving guaranteed, no-fault benefits, an injured employee generally gives up the right to sue their employer in civil court for the work-related injury. Workers compensation becomes the employee's sole (exclusive) remedy against the employer. This protects employers from potentially large negligence verdicts while ensuring employees get prompt, certain benefits. There are limited exceptions (such as intentional harm by the employer, or claims against negligent third parties). Understanding the exclusive-remedy concept and the grand bargain it represents is commonly tested workers-comp content.
Source: NAIC Model Outline, Exclusive Remedy

Practice more questions

This question is from our Insurance License Practice Tests practice test. Take the full practice test to test your knowledge across all Workers Compensation and other topics.

Take the Casualty Insurance practice test →

New to this exam? Our Insurance exam guide explains the format, scoring, and how to prepare.

Related questions

State-specific guides

Need information for your state? Our state guides cover local requirements, fees, and what to expect on exam day.