Workers CompensationQuestion 496 of 531

An injured employee collects compensation benefits and then sues the maker of the machine that hurt him. The manufacturer sues the employer, claiming the employer misused the machine. That suit against the employer is covered by:

a.Part One, statutory benefits
b.The manufacturer's product liability policy
c.Part Two, employers liability
d.Part Three, other states insurance

Explanation

This is a third-party-over action: the employee sues an outsider, and the outsider then turns on the employer for indemnity. Because the demand against the employer is a liability claim rather than a benefit claim, employers liability responds. Statutory benefits cover only what the compensation law owes the worker, and the manufacturer's own policy defends the manufacturer, not the employer it is suing.

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