COURT SAYS EMPLOYER SHOULD NOT PAY FOR ALL PERMANENT DISABILITY

The California Supreme Court has rejected an appeal of an injured electrician, affirming a lower court's ruling that an employer is not responsible for permanent disability it did not cause.

Larry Gossett vs. WCAB and Morrow-Meadows Corp., questioned whether an employer is responsible for all of an injured worker's permanent disability when there was pre-existing arthritis but the injured worker had no symptoms many years before his 2003 workers' compensation injury.

The workers' comp arbitrator initially ruled that apportionment did not apply and awarded Gossett 76 percent disability. The employer appealed. On appeal, the Workers Compensation Appeals Board overturned the arbitrator's award and issued an award allocating 15 percent of the PD to the pre-existing arthritis. Gossett appealed the new WCAB award of 65 percent, contending there should be no apportionment of PD because he did not have arthritis symptoms 10 years before his workers' comp injury. The Court of Appeal rejected Gossett's argument, and the Supreme Court refused to grant the petition for review.

According to Bradford & Barthel LLP, which represented the employer, this case is an example that the workers' comp reforms enacted in 2004 are working to correct inequities in the system.

One of the inequities was the concept of apportionment, or assigning responsibility for an injury based on causation. "The Supreme Court, in affirming the lower court's decision, is placing a stamp of approval on the 2004 reforms," the firm said in a statement. "In Gossett's case, the Court recognized the severe arthritis from a prior knee injury and allocated a portion of permanent disability award to the prior pathology, even though there were no symptoms for many years before the recent knee injury and Gossett was able to continue his job as an electrician. The Court, in its ruling, allocated responsibility to the employer by only that which the employer caused."

"It's basically a fairness concept and encourages California employers to hire the disabled, those with prior injuries, even the elderly, without concern of liability for pathology, which was not caused on their watch," said the firm's Kent Ball.

To view the ruling, visit http://appellatecases.courtinfo.ca.gov/search/
case/mainCaseScreen.cfm?
dist=0&doc_id=470652&doc_no=S152458

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BEAZLEY TURNS FOCUS TO MEDIA IN COVERAGE FOR DESIGN PROS

Beazley Insurance Co. takes a unique approach to architects and engineers professional liability by focusing on various media-related coverages needed by design professionals.

"We are still the only company at this point who has taken a media technology policy and built the architects and engineers professional liability policy into that, because we feel at this point that the industry has shifted over the last 20 years for the architects and engineers that they have much more liability than just doing their design," explains Dana Brown, specialty underwriter for architects and engineers for Beazley Insu-rance Co.

The media portion includes coverage for the transfer of electronic data.

"If, for some reason, a firm goes and somehow messes up the electronic data within the overall program, who's going to be liable? Is that something that's coming out of a professional service, or is that just data entry that has caused a problem? So, we're picking up that," Brown notes.

It also provides cover for those firms that are offering software or even technology products that remotely operate the plants they design.

Beazley also incorporates computer network security coverage for firms' Web sites. "If somebody broke into that site, hacked in, and takes that data that is considered confidential, again, who's going to cover that?" she asked.

Finally, the media-focused A&E policy includes liability for multi-media and advertising, as well as copyright infringement. "Most carriers, if you go and ask them, 'Is copyright covered?' The standard answer is, 'Well, it's not excluded.' Well, is it covered? It's hard to get underwriters to say it is, because the reality is that it really isn't. There are separate policies available for it. But we're covering that," Brown said.

ONEBEACON BETS BIG ON SMALL

OneBeacon Insurance Group has long focused on small business, with particular emphasis since 2000. In 2003, the company launched its OnePac product suite that provides tailored coverages for 14 industry groups and 360+ classes of business. The company defines small business based on the customer's eligibility and targets businesses with up to 25 employees, $10 million in sales, and property values of $10 million or less. The company actively writes business in 27 states, including just-announced entries to Minnesota and Kansas.

OneBeacon's OnePac solution begins as a business owner's policy and then provides customized coverages reflecting unique needs. The company targets 14 industry groups and provides solutions for more than 360 classes.