Delaware Business Insurance Update From CNC Insurance Associates, "Opt Out" Proponents Testing Work Comp Statutes, 11-11-16

The state of Texas currently allows qualified employers to "opt out" of the work comp system. This allows  businesses to take care of worker injuries outside of the rules and regulations of the law. Proponents of this option are testing other state legislatures in an effort to mirror Texas. Recently, Oklahoma courts declared this to be unconstitutional , but the fight for "opt out" goes on.
Work comp laws were put in place many years ago to make sure employee work related injuries were taken care of and the employers were protected from injured worker lawsuits. This was deemed the "exclusive remedy"  between employees and employers. It has worked well for almost a century. However businesses have been plagued with skyrocketing work comp premium costs and rising medical costs. So business owners are looking for a way to control these costs and feel that opting out of the work comp system may be the ticket.  The risk for  business is they no longer get the protection of the exclusive remedy that the work comp laws provide. It will be interesting to see if the pressure to reduce work comp costs push state legislatures to open up more opportunity for employers to "opt out".  It will also be interesting to see if injured worker lawsuits against " opt out" employers in States  that will allow this, will change  the proponents views. Keep an eye on this one folks. Until next time be careful out there and know your risks.

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

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