What is the name of your state? CA
For starters.... I am asking this question on behalf of someone else, so I may not have all the necessary info, but will try my best.
I work for a small business... in fact, I am the only employee... it is just me and my boss, but sometimes depending on the level of business we get some help.
A new employee was brought in to cover for my boss while he was out of town for a week or so. On the first day of work this new employee was injured and is unable to walk for several weeks and needs lots of physical therapy.
Now the twist... this employer had never made a claim before. Now that there was an injury, as soon as he made the claim he was informed that his workers comp policy had been cancelled due to a late payment a few months prior. There had been no notification that the policy had been cancelled. Also, the workers comp company had cashed a monthly check for payment toward that policy after the date they say the policy had been cancelled.
They have refused to honor the claim. My boss, clearly a small business owner, has been left to pay medical bills out of his pocket and is also paying lost wages for the time the employee is unable to work. He has not been sued but is doing this because he feels it is the right thing to do.... and probably because he would be sued if he didn't do it...
Anyway... it seems that if the insurance company failed to notify him of cancellation and he had no reason to seek insurance elsewhere, and especially since they continued to accept payments after the cancellation date, that they should be obligated to honor the claim. It simply is not fair that a small business dishes out so much money for insurance... I think his rate is in the 30% area, and as soon as a claim is made they not only deny it, but cancel the policy (which means I can no longer work now either since there is no insurance).
Any input on this matter? If more info is needed just ask and I will try my best.
Obviously if he fights the insurance company it would be a long and hard task... but I feel it is worth it. BUT... he did make a late payment... so it seems much of the question revolves around what obligation the insurance company has to inform him that the policy was cancelled and he was no longer covered.
Thanks again.
For starters.... I am asking this question on behalf of someone else, so I may not have all the necessary info, but will try my best.
I work for a small business... in fact, I am the only employee... it is just me and my boss, but sometimes depending on the level of business we get some help.
A new employee was brought in to cover for my boss while he was out of town for a week or so. On the first day of work this new employee was injured and is unable to walk for several weeks and needs lots of physical therapy.
Now the twist... this employer had never made a claim before. Now that there was an injury, as soon as he made the claim he was informed that his workers comp policy had been cancelled due to a late payment a few months prior. There had been no notification that the policy had been cancelled. Also, the workers comp company had cashed a monthly check for payment toward that policy after the date they say the policy had been cancelled.
They have refused to honor the claim. My boss, clearly a small business owner, has been left to pay medical bills out of his pocket and is also paying lost wages for the time the employee is unable to work. He has not been sued but is doing this because he feels it is the right thing to do.... and probably because he would be sued if he didn't do it...
Anyway... it seems that if the insurance company failed to notify him of cancellation and he had no reason to seek insurance elsewhere, and especially since they continued to accept payments after the cancellation date, that they should be obligated to honor the claim. It simply is not fair that a small business dishes out so much money for insurance... I think his rate is in the 30% area, and as soon as a claim is made they not only deny it, but cancel the policy (which means I can no longer work now either since there is no insurance).
Any input on this matter? If more info is needed just ask and I will try my best.
Obviously if he fights the insurance company it would be a long and hard task... but I feel it is worth it. BUT... he did make a late payment... so it seems much of the question revolves around what obligation the insurance company has to inform him that the policy was cancelled and he was no longer covered.
Thanks again.