Uninsured employers face all of the liability that a workers’ compensation insurance company would face. In addition, they may be sued in civil court for damages.
Liability can exist for medical benefits, the cost of medical-legal reports, temporary disability, permanent disability, rehabilitation vouchers, and other benefits as allowed by the Workers’ Compensation Judge.
In case of a civil suit filed against an uninsured employer you will face possible unlimited liability for all the above benefits and possible additional civil penalties.
The cost of the case to an uninsured employer could be relatively small or hugely expensive. For that reason it is appropriate to obtain legal representation to attempt to mitigate your damages.
In many cases it is possible to secure a settlement of the case prior to joining the uninsured employer’s fund. Once the uninsured employer’s fund is joined it is more difficult to mitigate damages. My specific plan for handling uninsured employer cases is to get to court early to avoid joining of the uninsured employer’s fund.
My aggressive style representation allows for quick case closure and in many cases we can resolve a workers’ comp case significantly reducing employer’s case costs. While guarantees can never be made I have found the best strategy is to get in the case early and attempt to resolve the case by way of settlement. A prolonged fight over injury AOE-COE is usually not in the best interest of an uninsured employer.
The workers’ compensation system is set up for insurance companies that have unlimited resources for defending cases. They also have unlimited resources to pay awards. An uninsured employer must mitigate the cost of the case by aggressively pursuing a settlement. In rare cases pushing the matter to trial quickly is the best defense possible.