An insurance agency must pay $5.8 million to a small business that discovered it lacked workers’ compensation coverage after a burned employee sued.
An agent for Hilb, Rogal and Hamilton Insurance Services improperly failed to tell the company that it wasn’t covered, a Los Angeles County Superior Court judge found. On July 2, he ruled in favor of John Williams and Steven Simon, owners of Rhino Linings Santa Fe Springs.
The company lines pickup trucks with plastic.
The suit by the owners said they only learned about their lack of coverage after a jury in 2004 found against them in a personal injury suit. They were ordered to pay $5.6 million to an employee who suffered second- and third-degree burns in an explosion.
Another insurer paid $1 million but the remainder, including interest, totaled $5.8 million.
Hilb, Rogal and Hamilton claimed their agent told Rhino owners they should get workers compensation insurance and they didn’t want it, “but there was never anything in writing to indicate that,” said Patrick Vastano, the attorney for the owners.
A call to the attorney who represented the insurance agency in the case was not immediately returned.
Kathy H says: 
Linda says: 
Cyber Attacks On Banks More Serious Than Public Realizes
E&O Insights: Restaurant and Tavern Risks
CEA’s First CIO Reflects C-Suite Trend
Golf and Country Clubs Weather the Storm
Midwest AGs Go After Storm-Chasing Roofing Companies
Medical Malpractice Payouts Not Driving Up Health Costs: Study
Florida Lawmakers Approve Medical Malpractice Reform
Industry Results Show Positive Signs for Workers’ Comp Line, NCCI’s Chief Economist Says
Sign up to receive insurance news alerts!
