Some Tennessee restaurant owners are concerned that a small, unrated insurance company with ties to the state has been chosen to take over a worker’s compensation fund.
Already liable for a $4.8 million fund that the state says was mismanaged, restaurant owners are wary of getting burned again.
The state Department of Commerce and Insurance has signed a deal to transfer the Tennessee Restaurant Association’s bankrupt trust liabilities to Brentwood National Insurance Co.
State and company officials say the insurance company meets the requirements for financial stability.
Randy Rayburn, who owns Sunset Grill and Midtown Cafe in Nashville, says he’s concerned about the health of the company and wants a guarantee from the state that the restaurants won’t be liable if the company goes bust.
The state liquidated the group’s workers’ compensation fund two years ago and is asking restaurant owners to come up with a $4.8 million shortfall to pay injured workers.
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