The Occupational Safety and Health Administration (OSHA) reports that more than 20,000 people are injured on the job each year in South Carolina. For injured workers, navigating the claims process can be confusing. Workers’ compensation and employers’ liability insurance may be issues that arise. At Smith & Jones Law, LLC, we are a work injury firm that puts clients first. In this article, our Lexington workers’ comp attorney explains the key things to know about the difference between employers’ liability and workers’ compensation in South Carolina.
South Carolina Law: Employers Liability Insurance vs Workers’ Compensation
Employers’ liability vs workers’ comp can be a complicated issue in South Carolina. As a starting point, it is useful to understand the legal meaning of these two different systems:
- Workers’ Compensation in South Carolina: South Carolina’s Workers’ Compensation Act, codified in Title 42 of the South Carolina Code, establishes a no-fault system for workplace injuries. Most employers with four or more employees must secure workers’ compensation coverage. When an employee sustains an injury arising out of and in the course of employment, the Act provides the near exclusive remedy against the employer. Workers’ compensation does not require proof of negligence. The injured worker must prove compensability, not fault. If the claim is accepted, the worker may recover medical treatment, temporary total disability benefits, temporary partial disability benefits, and permanent disability benefits.
Employers’ Liability Insurance in South Carolina: Employer’s liability insurance operates differently. It is typically included as Part Two of a standard workers’ compensation insurance policy. While workers’ compensation coverage pays statutory benefits to injured employees, employers’ liability insurance protects the employer against certain lawsuits that fall outside the workers’ comp insurance. Employer’s liability coverage may apply when an employee files a civil lawsuit that the employer’s negligence caused injury and that the claim is not barred by the exclusive remedy doctrine. Know the Key Differences Between Employers’ Liability Coverage and Workers’ Comp
Difference #1: The Fault Requirement (or Lack Thereof)
The first and one of the most important differences between employers’ liability coverage and workers’ comp insurance in South Carolina is fault. Workers’ compensation operates as a no-fault system under South Carolina law. An injured employee must prove that the injury arose out of and in the course of employment, not that the employer acted negligently. On the other hand, employer’s liability exposure typically arises in civil litigation where fault becomes central. In a negligence lawsuit, the plaintiff must establish duty, breach, causation, and damages. That is a difference that matters. It could have tangible implications for a South Carolina work injury claim. A Lexington work injury lawyer can help you navigate the issue of fault. All serious workplace accidents should be thoroughly investigated by an attorney. It is useful to know why an accident happened.
Difference #2: Limited Statutory Benefits vs. Full Tort Damages
Another big difference between workers’ comp in South Carolina and employers’ liability in South Carolina is the scope of the damages that can be recovered through a claim. As a matter of state law, Workers’ compensation limits recovery to statutory benefits. These include medical treatment, wage replacement at two-thirds of the average weekly wage, and scheduled or permanent disability benefits. The Act does not permit recovery for pain and suffering or punitive damages. On the other hand, employers’ liability coverage in a civil lawsuit allows for broader recovery. A successful negligence claim may include full lost wages, diminished earning capacity, pain and suffering, emotional distress, and, in certain cases, even punitive damages. The potential financial exposure in civil litigation often exceeds workers’ compensation benefits significantly.
Difference #3: Exclusive Remedy Protection vs. Direct Lawsuit
Workers’ comp is generally an exclusive remedy for an injured employee against his or her own employer. Employers’ liability coverage applies in cases where a direct lawsuit for negligence is possible. When an employer maintains proper workers’ compensation coverage, the exclusive remedy provision generally bars employees from filing direct negligence lawsuits against the employer. The claim remains within the Workers’ Compensation Commission. Employer’s liability becomes relevant when that protection erodes..
Difference #4: Administrative Process vs. Civil Court
Finally, a notable difference is that workers’ comp claims are largely administrative whereas employers’ liability insurance may be implicated where there is a civil case. Workers’ compensation disputes proceed before the South Carolina Workers’ Compensation Commission. Hearings follow administrative procedures, and commissioners decide issues of compensability and benefits. Employer’s liability claims proceed in the South Carolina Court of Common Pleas under formal civil procedure rules. Civil litigation involves pleadings, depositions, interrogatories, expert testimony, and potentially a jury trial.
How Our Lexington Workers’ Comp Lawyers Can Help
Workplace accident claims are complicated. Injured victims in Lexington need to know how to effectively navigate the claims process, including employer liability cases and workers’ comp cases. At Smith & Jones Law, LLC, we are a law firm that is on the side of people and families. Our case results show what we can do for injured workers. If you were hurt on the job while working anywhere in Lexington, you can contact us for a free, no obligation initial case review.
Contact Our Lexington, SC Workers’ Comp Attorney Today
At Smith & Jones Law, LLC, our Lexington workers’ comp attorney has the knowledge, skills, and experience to handle employer liability claims and workers’ compensation cases. Call us now or contact us online for a free, no obligation initial consultation. We represent injured workers in Lexington and throughout the region.