Insurers Win NJ Limits on ‘Seamless’ Workplace Injury Coverage

Insurance giant Hartford and other firms that offer workplace liability policies can decline representing business policyholders in civil lawsuits after workers compensation is forked over, the New Jersey Supreme Court ruled.

The landmark ruling means businesses, not insurers, will face the extra cost of defending against claims despite “seamless” workplace liability coverage, so long as an employee has already received workers compensation prior to suing for negligence or other harm due to workplace injury.

“The covered-claim limitation on the duty to defend is particularly significant here, given the carefully constructed compromise that undergirds our workers’ compensation scheme,” Justice Douglas M. ...