Lonnie Lewis died in a tragic car accident. R&F Trucking's workers compensation would have covered him except that R&F did not carry workers compensation insurance. R&F contracted with DOT Transportation and its workers compensation would have provided coverage for the loss except that DOT Transportation also did not carry workers compensation insurance!

Lonnie's family demanded relief.

Click here to learn how the court ruled.

Workers compensation insurance is not a suggested coverage. It is mandatory in almost every situation where an employee works for an employer. Unfortunately, the employer/employee relationships are becoming increasingly murky. A popular way to reduce expenses is to hire workers as independent contractors rather than as employees. This reduces a number of services that the employer must perform. However, this is appropriate only if the worker meets the criteria for independent contractors.

Click here for a PF&M article that addresses the advantages and disadvantages of using independent contractors and some federal guidelines to use to properly classify such workers.

Lonnie was killed in a traffic accident. Automobile accidents cause numerous workers compensation injuries. This fact is often overlooked because of a focus on the premises and jobsite exposures.

Click here for a Rough Notes article that highlights the importance of effective automobile risk management in controlling workers compensation losses.

DOT Transportation was required to pay Lonnie's family based on the workers compensation coverage. However, that was not the end of the story. Lonnie's family was also permitted to file a wrongful death claim against R&F because it was not required to pay the workers compensation and therefore could not claim the workers compensation double recovery statute. R&F's commercial auto or commercial general liability coverage would not provide coverage because of exclusions in them.

Some of your clients may have added employees and do not know that they need workers compensation coverage.

Click here for a letter you could mail to your clients to help them evaluate their workers compensation exposure.