Worker faces uncertain future after insurer rescinds comp policy
A worker who was harmed while on a trip to Tennessee could be left out in the cold after a decision about workers’ compensation payments. The man, who injured his back while he was lifting a truck latch in 2009, is the subject of a workers’ compensation dispute in which in an insurer rescinded a company’s policy even after a claim was filed. Official reports show that the company in question may have misled the insurer about the nature of its workers’ activities, leading the policy to be retracted.
The victim in this case sought compensation for a workplace injury in 2009. The California man was reportedly lifting a latch on his truck when he was injured. A problem arose, though, when the insurer determined that the man was traveling more than 200 miles from his company’s home office — an action that was not supposed to be covered under the employer’s insurance. The employer misled the insurer, saying that employees would not be traveling that far when the insurance application was submitted.
As a result, the insurer rescinded the policy, stating that the company had violated its terms. The company returned the premiums paid by the company, but the victim was now left with little legal recourse. He was ultimately compensated through the California Uninsured Employers Benefits Trust Fund because his employer lost its insurance status. However, that compensation is coming under fire after a recent appeals court decision, which sends the case back to a lower court for review.
You would imagine that it would be easy for someone who has suffered legitimate workplace injury to receive compensation for their medical costs and lost wages. However, the dynamic between employers and insurers can cast doubt and difficulty on these cases. A qualified attorney can help victims recover the financial compensation they need and deserve, even in a complicated situation like this one.
Source: The Recorder, “Workers’ Comp Policy May Be Rescinded Even After Claim Was Filed, California Court Rules,” Steven A. Meyerowitz, May 16, 2017