My employee spilled wheel acid on his leg. He wasn’t wearing an apron. It burned through his jeans and caused 3rd-degree chemical burns. The ER bill is $5,000, and he needs skin grafts. He tried to use his own health insurance, but they denied it because it happened at work. Now he’s looking at me.
Key Takeaways
- Health Insurance Denies Work Claims: Personal health insurance investigates injuries. If the ER notes say “chemical burn at work,” they deny payment and point to Workers Comp.
- Workers Comp is Exclusive Remedy: If you have Workers Comp, he gets paid, and he cannot sue you. If you don’t have Workers Comp (and were legally required to), he can sue you for the bills + negligence + penalties.
- State Fines are Massive: Operating without mandatory Workers Comp carries massive daily fines in states like NY or CA.
- PPE Defense: Workers Comp is “No Fault” (they pay even if he forgot his apron), but having documented PPE training helps prevent OSHA fines.
The “Why” (The Trap): The “Uninsured Employer” Fund
If you don’t have insurance, the state might pay him from an “Uninsured Employer Fund.”
Then, the state comes after you personally. They can seize your assets, lien your house, and shut down your business.
The “I’m just a small business” excuse does not work for employee injuries.
The Investigation: “I Called Them”
I asked about the fallout of an acid burn.
1. With Workers Comp
- Outcome: Insurance pays the $5k ER bill + lost wages. Your premium goes up next year. Employee returns to work later.
2. Without Workers Comp
- Outcome: You owe $5,000 in cash immediately. The employee sues for pain and suffering—$50,000 or more. The state fines you $10,000.
- Total Loss: ~$65,000 + Bankruptcy.
Comparison Table: Injury Costs
| Scenario | Medical Bill | Lawsuit Risk | State Fines |
| Has Workers Comp | $0 (Insurer pays) | Zero (Barred) | $0 |
| No Workers Comp | You pay 100% | High | High |
Step-by-Step Action Plan
- Get Workers Comp: If you have even one part-time employee, buy a “Minimum Premium” policy. It costs ~
500−500−1,000 a year. - Enforce PPE: Chemical resistant aprons, gloves, and goggles are mandatory for acid use. Document the training.
- Emergency Shower/Wash: Have a hose or eyewash station ready. Immediate flushing reduces the burn severity and the claim cost.
- Switch Chemicals: Switch to non-acid wheel cleaners (like Iron X or Brake Buster). They are safer and reduce your liability risk.
FAQ
Q: He is a 1099 contractor. Do I need Workers Comp?
A: Be careful. If he uses your tools, your chemicals, and works your hours, the state will likely classify him as an Employee after the injury and fine you.
Q: Can I just pay his medical bill cash?
A: You can try, but if complications arise (infection/grafts), the bill will outgrow your cash, and it’s illegal to hide workplace injuries.
[IMAGE: Photo of a chemical safety kit (Apron, Goggles, Gloves) next to a bottle of Wheel Acid.]