Workers Compensation Insurance Industry Scandal Keeps GrowingWednesday, August 10, 2005
Employers may finally be waking up to the reality that workers compensation insurance companies ( not claimants or their lawyers ) are the real culprits in pushing up workers compensation premiums. Thanks to our friends at the Workers Comp Insider for the thorough and sad story of Enron-like insurance executives pushing up the cost of workers compensation insurance for small employers. Its generally not the claims examiners attorneys deal with who are the bad apples. In fact, they themselves are victims by having to work for companies with tarnished reputations or if they own now de-valued insurance company stock. I’ve heard from more than a few of my workers compensation insurance industry friends who are demoralized and looking to jump ship (and work for claimant law firms like my own!).
Once again, most of this unethical and immoral business conduct would not have come to light had it not been for the long sword of New York State Attorney General Eliot Spitzer. I, along with workers compensation insurance expert Joe Paduda, predict more indictments, guilty pleas and convictions down the road for the workers compensation insurance industry. As Yogi Berra said, “It ain’t over till its over“. Hopefully, we will have a much fairer workers compensation system for all stakeholders at the end of these investigations.