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Ongoing WC case but changed Ins. companies New Hampshire

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  • Ongoing WC case but changed Ins. companies New Hampshire

    I have an ongoing WC case that has been going through litigation for 2 years. We changed Insurance companies about a year ago, so the old ins. company is the one going through litigation. My main question is, are we as the company affected by the outcome of the litigation, though we have switched companies? Will our rates go up accordingly depending on wether we settle or continue litigation? This is my first experience with this type of WC case.
    Please let me know if I need to provide additional info.
    Thank you

  • #2
    Your prior WC carrier is holding the liability for the claim because thats' the one you paid premiums to. They will continue to provide benefits, and/or litigate the disputed issues until that claim resolves.

    Resolution of a comp claim can be by Stipulation, or C&R or in some cases a Finding w/Award by a comp court judge.

    Default resolution is payment of indemnity due, based on impairment rating, and access to future medical care. C&R would close out all liability for this injury.

    Your comp coverage/liability premiums are based on the exposure in the job classifications you may have in your type of business. Your claims experience, or "X mod" is also taken into consideration.

    Nearly all insurance companies subscribe to a service whereby all claims are reported including the amount of exposure/dollars paid in a claim.

    My main question is, are we as the company affected by the outcome of the litigation, though we have switched companies?
    Unless you are legally self insured, there would be no money out of your pocket for the claim. Carrier pays all benefits including any lump sum cash to buy it out.
    Will our rates go up accordingly depending on wether we settle or continue litigation?
    Either or questions are difficult.
    Your WC premium may or may not be affected, that would depend on your claims history.
    Litigation does not affect the premium. And, in most cases, once the carrier accepts your claim...you as the employer are not involved in any decisions made in the claim. Much depends on how your coverage is written. In some cases, the CA/claims adj. may discuss a lump sum settlement with the employer as this may/may not affect your 'X-mod'.

    As your concern is the premium here... you are appearently not self insured for industrial injury/illness.

    Information on Workers Comp in NH is here http://www.labor.state.nh.us/busines...mpensation.asp

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    • #3
      Thank you, CAIW, you answered all of my questions.

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