One of the true values of Workers Compensation law is the “exclusive remedy” provision to the employer. Basically, in return for providing coverage for injuries arising from the job, this provision protects you from being sued by the employee for the injury, regardless of who has been negligent. Thus, the benefits provided automatically by Workers Compensation become the “exclusive remedy” for the injury.
However, there’s one way to bypass this barrier to employer liability. It’s called “third party over.” Let’s say that an employee is injured when the scaffolding on which he’s standing collapses. Workers Compensation pays the claim, so he can’t sue the employer. However he chooses to sue the scaffolding company, alleging improper equipment and installation. He wins a judgment, which leads the scaffolding company to sue the employer/contractor, claiming improper usage of the scaffolding. In effect, the employer/contractor is being sued for damages arising from injury to its own employee — just what Workers Compensation is designed to prevent.
Is such a suit legal? Yes. Because the scaffolding company isn’t the injured person’s employer, there’s no prohibition against his suing them — and Workers Compensation law clearly can’t prohibit the scaffolding company from claiming against the contractor, either contractually or by alleging negligence.
If you face such a situation, would your Workers Compensation coverage protect you (because the claim originated from an injury to an employee)? Or would you have to turn to your General Liability coverage, as you would when sued by an outside party? The answer: Either policy might cover this situation, depending on the basis of the suit. For truly comprehensive protection, you need to carry several types of insurance. No one policy does it all. A claim that might fall just outside the purview of one policy can be either a disaster, or simply a hand-off to another type of coverage.
Keeping your entire umbrella of insurance protection current and coordinated might seem complicated — but that’s where Scurich Insurance Services, located in California, comes in. When it comes to risk management and insurance, helping you focus on what you do best is what we do best.
Read more
As seen in: Property Casualty 360 9/19/2012 By Arthur D. Postal
With the signing and passing last week of the new California Workers’ Compensation Reform by Governor Jerry Brown. While it is widely known that California’s Workers’ Compensation System is know for being the most complicated system out of them all, then next steps in the process regarding carrying out the new regulations will determine the success of this reform.
Governor Brown, signed the bill in a family owned print shop in San Diego, California and promoted this new legislation Walt Disney Co. studio in Burbank, California. The Governor’s office released a statement saying that the need for this reform was great because the amount the cost for Workers’ Compensation has risen to. The new Legislation passed will increase benefits to workers and allow increased benefits to those who are on long term disability. It is being said that if the system is made more efficient and limiting the legislation that in the long run it will save businesses about $1 billion and provide increased payments to those workers out on disability.
Contact any of the helpful and friendly agents at Scurich Insurance Service, located in California, with any questions regarding your Workers’ Compensation policy and how this new legislation will effect your policy. All of us at Scurich Insurance Service would like to invite you to connect with us on Facebook.
Content first stated by: http://www.propertycasualty360.com/2012/09/19/california-workers-comp-reforms-signed-insurers-re?ref=hp
Scurich Insurance Services did not originally write this content.
Read more
Scurich Insurance Services, located in Northern California, has been serving the Monterey Bay Area since 1924. We understand that each state has its own workers’ compensation laws that handle claims from employees who are injured while working and those laws make it difficult to understand what is and is not covered. Fill out the form below to complete our simple Request Form and an agent from Scurich Insurance will respond within 24 hours regarding your workers’ compensation policy.
If you’re looking for better service, lower prices or just need a change, we are easy to find.
Not sure if you’re covered enough? We can help find fatal gaps in your current policy and avoid potential disaster.
We look forward to offering you great service!
[formidable id=15 title=true]
Read more
Every state battles fraud and abuse of its Workers Compensation system. Even though you use Worker Comp to protect your employees and keep your premises safe, you might well end up paying higher premiums because other firms, employees, and medical providers have no compunction about cheating the system through fraud and abuse.
Workers Comp fraud involves such criminal acts as workers falsifying claims, employers misclassifying high-risk workers with less dangerous jobs to lower their premiums, and physicians exaggerating injuries and their treatment and overbilling insurance companies for expensive services never rendered. Fraud has led a number of states to pass legislation simplifying the prosecution of offenders. On the judicial front, some states provide insurance companies with immunity from lawsuits if they report Workers Comp violators. On the downside, insurers need to tread cautiously because a firm wrongfully accused of fraud has legal recourse after a false report or misleading statement.
Unlike fraud, Workers Comp abuse isn’t a felony, although it also increases premiums for everybody. Usually, this misuse of benefits involves a worker who uses unnecessary medical services, remains away from work after their injury has healed, or reports an off-hours injury as happening on the job.
According to a recent Insurance Research Council survey, more than one in four workers (28%) believe that padding Comp claims is justified to recover the policy premium, which they aren’t even responsible for paying! Insurance companies have trouble detecting this common abuse, especially when they’re up against a stress or soft-tissue injury, because there are few if any physical symptoms. This attitude among workers might be an extension of the belief that claims-padding on policyholders’ Personal insurance coverages (Auto or Homeowners) is simply a way of getting their money’s worth from their premium.
As a business owner or manager, you can help curb Workers Comp fraud and abuse and keep your premiums under control by:
- Screening out potential abuses when you recruit employees and assign jobs.
- Developing close, mutually respectful relationships with your workers to minimize any grudges against management that might encourage abuse.
- Keeping close tabs on potential abuses of the system.
We’d be happy to work with you in reaching these goals. Contact any of our helpful and friendly agents at Scurich Insurance Services with your questions regarding Worker’s Compensation. Connect with us on Facebook to learn more about us and stay informed regarding all insurance related topics.
Read more
Examples abound of workers offering their skills outside the workplace: Nurses and doctors aid the injured or ill; contractors assist someone with heavy lifting or short hauling while on a hardware run; benevolent computer techies make a quick fix for a customer without a dispatch order. If one of your employees suffers an injury while providing such help, can the employee collect under Workers Comp? After all, they were doing their work.
A California correctional officer, injured while helping at the scene of an accident on his way to work, was denied Workers Comp benefits on the basis that his services did not qualify as regular employment. Citing an ethical standard set forth for correctional workers in the Ethics Cadet Workbook, the injured officer claimed it was his ethical duty as a corrections officer to assist those in need, regardless of when or where. Hence, he argued that his services at the accident were related directly to his employment.
However, the court disagreed, stating that: “The fact that the law enforcement code of ethics for correctional officers speaks of a duty to serve humankind and safeguard lives and property does not confer authority on a correctional officer to act outside the scope of his statutory jurisdiction.”
Knowing the eligibility rules for Workers Comp benefits is essential for you and your employees alike. Now might be the time for a refresher course. For more information about your Comp coverage rules, call our service team today.
Contact any of the helpful and Friendly agents at Scurich Insurance Services with any questions regarding your Worker’s Compensation Policy with us.
| Scurich Insurance |
| 320 East Lake Avenue, PO Box 1170 |
| Watsonville, CA 95077-1170 |
| Office: 1-831-722-3541 |
| Toll Free: 1-800-320-3666 |
| Email Us! |
Read more
Although most people think of business places as safe and serene, in fact they’re rife with risks, both inside and outside the building. Security experts recommend taking these safety precautions:
- Parking Lot Security/Lighting. Because crime flourishes in the dark, implement a “buddy system” to ferry workers to and from their cars. Limit parking lot access to controlled points and have the lots as well lit as possible. In fact, light is such a deterrent to crime that it’s wise to keep your entire facility lit, inside and out, during non-business hours.
- Entrance Area Safety. Make sure a receptionist is on duty at all times. Provide a registration system for all visitors (even if they wear the uniform of contract cleaning or other service personnel). Have all doors, windows, and locks checked frequently for proper operation. Use badge or other photo ID systems, with frequent checks of entry code systems. Never let employees prop open a door with a chair so that it doesn’t lock behind them outside on a break.
- Suspicious Activity. Urge employees to report any suspicious persons or activity around the building. Never allow employees to open suspicious packages. Instead, report them to the authorities for proper search and disposal.
- Information Safety. Unfortunately, it’s increasingly easy for computer hackers or disgruntled employees to steal your organization’s vital business information. To guard against this threat, use the latest security software for your entire system, updated frequently, and make sure to have regular backups for this information. Shred paper documents with critical information as soon as they’re no longer needed.
- Equipment Security. Keep an inventory of all your critical equipment, hardware, and software. This is especially important as electronic devices keep shrinking in size, making them easier to conceal and remove. Having an inventory (many experts suggest taking photos of important items) will also make it easier for your insurance carrier to process any claim if anything “goes missing.”
- Employee Valuables. Provide secure places, such as lockable drawers and closets, for employee property and encourage their use. Valuables, especially any item that reveals personal information, should be locked away during company gatherings or breaks.
- Safety Team. Set up a group of managers and employees who meet regularly with a set agenda.
Read more
