Insurance Journal: In Alabama, Shot Employee Gets No Workers’ Comp and No Employer’s Liability.

He was not covered by workers’ compensation insurance. But his course and scope of employment was enough for an employer’s liability insurance exclusion to apply, said the U.S. 11th Circuit Court of Appeals, which overturned a lower federal court ruling and left a left-for-dead convenience store employee with no recompense from the store’s insurance carrier.

The appellate court found in favor of State Farm Fire and Casualty Co., noting that the employer’s liability policy clearly excluded coverage for criminal acts or for injuries arising “out of and in the course of … employment.” The decision negated a lower court’s $1.3 million judgment against State Farm.

Under Alabama law, employers with fewer than five employees are not required to secure workers’ compensation coverage. Only Alabama, Mississippi and Tennessee allow coverage exemptions for firms with that many workers, according to the Workers’ Compensation Research Institute.

You can read (or listen to!) the full article here.  

The WCRI study that they reference is Workers’ Compensation Laws as of January 1, 2025.  Visit its page on our website for more information, including details on how to get a copy.