Although a suit brought about by an employee is unlikely, it is a possibility and if it happens represents serious costs. You could be facing fees for a defense attorney, the cost of an investigator to prove liability for the accident, court fees, and damages if the suit is successful. Because these costs could be devastating for your business, you should hold employer’s liability coverage in yoru cabinet makers workers compensation.
If your employee who was injured on the job aims to prove that a third party was liable, you could be facing a different type of lawsuit. Your worker, for instance, may have been injured by a tool they believed to be faulty. They may choose to sue the manufacturer of the tool for damages. The manufacturer, however, may claim that you and your business are liable because you did not maintain the tool as directed. In this event, your employer’s liability coverage through the workers compensation for your cabinet makers business will again cover your legal costs. This could include legal fees, investigative fees, court costs, and awarded damages.