Insurance Agency Must Pay $5.8 Million to SoCal Firm

July 16, 2007

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.

Was this article valuable?

Here are more articles you may enjoy.

Latest Comments

  • September 7, 2007 at 2:48 am
    Kathy H says:
    P. S. I am Roman Catholic, first generation American, daughter of two immigrants from Ireland. Yes the priests should pay, dam right. I spent 12 years in Catholic school and a... read more
  • September 7, 2007 at 2:37 am
    Kathy H. says:
    I haven't been on due to anxiety, depression and just closing my eyes to this mess. So, I guess I didn't speak properly? Sorry. I am talking about PEO's. PERIOD. Not agents. P... read more
  • August 6, 2007 at 11:34 am
    Linda says:
    I have read several of the comments and I believe for the most part, some of you are missing the point. The main focus on this is the fact that the agency did not document the... read more

Add a CommentSee All Comments (39)Add a Comment

Your email address will not be published. Required fields are marked *

*

More News
More News Features