Delaware Business Insurance Update From CNC Insurance Assoc. " Undocumented Workers and Work Comp" 6-1-16

Many small business owners are using undocumented workers as employees. Most of the time this is done without even knowing it as many workers will use fake social security numbers or tax ID numbers, to pass the screening and hiring process. However when an on the job injury occurs the medical bills and lost wages are still the responsibility of the business owner, both from a legal and moral position. The good news however is that more and more states are allowing the work comp system to pay for these claims. Prior to these legislative changes many small business employers found themselves in a pickle with legitimate claims to pay and no legal way to use the work comp system to pay them. Even the states that have not put legislation in place, there is case law which gives the insurance companies who cover work comp a "directive" to pay these injury claims.  This is good news for small business because it takes them out of the legal cross hairs , especially when most business owners do not find out that their injured worker is undocumented until after the claim. Time will tell if this trend continues across the country. For small business sake let's hope so. Until next time be careful out there and know your risks.

G.  Kevin Nemith  President CNC Insurance Associates and the Small Business Insurance Center
Serving DE, MD, PA, VA, and NJ
www.cncinsurance.com
www.bizinsurancetv.org

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