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Litigated comp claims climb as more injured workers lawyer up - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Litigated comp claims climb as more injured workers lawyer up by Louise Esola Workers Comp , Workers Comp Coverage Aon , Sedgwick Jun 17, 2026 Litigation is creeping deeper into workers compensation claims, adding cost and complexity for employers, even as the line remains broadly profitable and protected by exclusive remedy. “We’re operating in a more adversarial claim environment than we ever have,” said Matt Hannon, New York-based national casualty practice leader for Aon in North America. “Litigation is being driven by both economic pressures and shifting societal attitudes toward liability. In other words, ‘I got hurt; someone needs to pay for this.’” Recent Aon data shows that the share of workers compensation claims in litigation rose to 12.3% of the brokerage’s total claims inventory in 2024, up from 7.6% in 2018. In 2025, 61% of 515 workers compensation professionals surveyed by Healthesystems ranked litigation as a top industry challenge, up from 47% the prior year. That report tied litigation to provider shortages, comorbidities, mental health issues and complex or high-dollar claims. Workers compensation does not face the same “nuclear-verdict” exposure as general liability and commercial auto, but higher court awards and settlements, or “social inflation,” are influencing claimant expectations, experts say. Injured workers are more aware of attorneys, more exposed to legal advertising and often less familiar with the “grand bargain” of workers comp, in which statutory benefits are provided in exchange for limits on civil litigation. Employers should view litigation as a warning sign of what happened earlier in the life of the claim, said Christopher Iovino, New York-based North America leader of Aon Global Risk Consulting, adding that “litigation is the most lagging indicator you’re going to see in a workers compensation claim.” While state laws are often rigid on compensability disputes, pressure is rising after a claim has been accepted, said Max Koonce, Bentonville, Arkansas-based chief claims officer, casualty, at Sedgwick. “That is where we’re starting to see a little bit of an increase; when we’re trying to decide which benefits apply and which benefits don’t apply, sometimes the law is not as clear-cut.” That is where social inflation and legal advertising are beginning to bleed into workers comp, he added. “You’re seeing a heightened awareness of lawyers and what they bring to the table, and whether or not they can get you this or get you that,” Mr. Koonce said. More disputes arise when claims do not settle, and injured workers seek to add conditions or benefits to keep claims moving, said Joseph Gross, a partner at Cleveland, Ohio-based law firm Benesch. “My clients are less likely to settle claims … which means that the claimants continue to litigate so that they can get to a settlement,” he said. In some cases, a claimant may seek to add a psychological condition or argue that a pre-existing condition was aggravated by the workplace injury, he said. The solution, several experts said, is not only legal defense but also earlier communication. “When people get confused or they don’t understand, or they don’t feel like they’re being treated right, they’re going to find someone within the process that will provide that to them,” Mr. Koonce said. Employers can reduce litigation risk by staying connected with injured workers after an accident, said Annette LaBarre, Warren, New Jersey-based vice president and director of workers compensation at MSIG USA. “When an injured employee is out of the facility or workplace, they become lost, I think, to a certain extent,” she said. “The individual who’s out of work tends to feel like they’ve been left behind.” That sense of separation can be a trigger for attorney involvement, she said. “Employers really need to stay engaged with their injured employees in order to keep them close, which helps avoid the litigation,” Ms. LaBarre said. 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