The Virginia business insurance industry, employers, and workers may be impacted by a recent decision from the state's Supreme Court, ruling that employees cannot both receive workers' compensation benefits and sue an employer, even if that employer fails to purchase mandatory workers' compensation coverage.

The decision was made concerning the case of a wool manufacturing worker, Barry Redifer, who suffered an injury on the job and filed for insurance while suing his employer for negligence, Business Insurance reports.

A Virginia court of appeals ruled that the man was eligible for workers' compensation benefits, at which point his employer moved for the negligence suit to be dismissed. The employer did pay Mr. Redifer's medical care and disability benefits, according to court records.

The case was decided against Mr. Redifer in the Circuit Court of Augusta County, at which time he appealed to the Virginia Supreme Court. Their final decision upheld the lower court's ruling, dismissing the case based on Mr. Redifer's collection of benefits from his employer.

This decision may also affect Virginia health insurance and other benefits in the future, requiring employees to choose between suing for negligence or receiving benefits, though how broad the impact will be is currently unclear.