Businesses must have insurance to cover any damage or injury expenses associated with an injured employee, if the injury occurred while working. Connecticut workers compensation insurance takes care of any claims that a business might face if one of its employees gets hurt on the job. Even though this may not be the most exciting topic in the world, a recent headline showcases a recent workers’ compensation settlement between two business giants.
Released today by Property Casualty 360’s website this morning, “Liberty Mutual will more than likely appeal the $450 million settlement between American International Group (AIG) and companies that claimed the one-time insurance giant underreported premiums to a workers’ compensation program. U.S. District Court Judge Robert W. Gettleman released his written opinion to grant preliminary approval of the settlement and certify a new class of companies, which needed to be done since Liberty Mutual originally filed the lawsuit against AIG.”
The article continues by saying that “AIG announced at the start of the year that it agreed to pay a group of companies—ACE, Auto Owners, Companion, FirstComp, Hartford, Technology and Travelers—$450 million to settle a lawsuit filed by Liberty Mutual’s Ohio Casualty and Safeco subsidiaries in April 2009 on behalf of a pool of insurers alleging that AIG underreported workers’ compensation premiums over at least a 20-year period. Liberty Mutual has worked to hault the settlement, saying it comes nowhere near the true extent of AIG’s underreporting and that it was made because AIG also agrees to release the companies from a lawsuit it filed against them.”
Furthermore, “Gettlemen has requested another hearing Aug. 5 to work out details of a notice to be sent to all class members. Each company in the class can decide to opt out of the settlement. Liberty Mutual stands to gain $99 million from the settlement if it decides to join, according to a source close to the case. If enough companies from the class chose to opt out of the settlement, AIG can withdraw its settlement offer.”
It will be interesting to see how this debacle turns out, and in turn will affect your business’s Connecticut workers compensation insurance. A successful business owner is a smart business owner, so having the necessary insurance coverage should be a no-brainer.