Make sure you keep your insurance payments up to date. If you let your policy lapse and an employee files a claim, you open up yourself to a negligence lawsuit.
The case: After injuring his back on the job, a warehouse worker found out that the firm's workers' comp policy had lapsed.said all employees would be provided workers' comp insurance. He sued for negligence, breach of contract and a violation of state insurance code. A federal appeals court let the case go to trial. (Adams v. Reynolds Tile and Flooring Inc., No. 14-03-00263-CV, Texas Ct App, 2003)
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