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Video Summary
This source features legal professionals discussing the severe risks employees face when working for businesses that lack workers’ compensation insurance. While victims can seek relief through an uninsured docket, the process often yields minimal financial recovery because these employers typically lack the assets to pay claims. The speakers highlight that the construction industry is particularly prone to these issues, sometimes using “ghost policies” that offer no real protection to staff. To avoid being left without support after an accident, workers are encouraged to verify coverage through state databases before accepting a job. Ultimately, the experienced emphasize that proactive research is the only way for laborers to ensure their medical and financial security in the event of an injury.
Transcription of the Video
Clark Speaks: I’m Clark Speaks, the catastrophic injury lawyer. Welcome to The Verdict. I’m here with Brian Grosser. Brian, let me ask you about what happens if a person is hurt at work and their employer does not have workers’ compensation insurance, or tells their employee they don’t have it.
Brian Grosser: Yeah, that’s an unfortunate scenario that I really don’t have good answers for you in that regard. There is something called the uninsured docket. The reason why I say I don’t have good answers is that the employer is going to have to pay eventually something to somebody, right? It’s just going to be a matter of what money they have available. Usually, if you are talking about an employer that doesn’t have compensation insurance, and they are required to have it—which is if they have three or more employees here within the state of North Carolina—you see it a lot in construction.
It’s a situation where they are probably flying by the seat of their pants anyway, and they don’t have a vast amount of money. That’s why they don’t have the coverage in the first place; they don’t have the assets to pay for it. It is unfortunate because the person who ends up in a difficult position in all of this is typically the employee. What ends up happening is you are placed on this uninsured docket, and that is where the employer is basically held to task by the Industrial Commission. They may be ordered to pay something, but it is only what they have available to pay. They are not like an insurance company that has all this revenue from premiums. They are just an employer with probably a very marginal profit, if any.
Clark Speaks: So, can you recover under the uninsured docket?
Brian Grosser: You can. You would go through the uninsured docket and you can have representation for that. Typically, however, your recovery is going to be very limited because you’re not dealing with an insurance carrier; you’re dealing directly with an employer. If that employer does not have coverage, it is likely because they don’t have many assets to begin with. It is like extracting payment from those without funds. Much of the time, they don’t even show up to participate. They can be in contempt of court and face criminal charges, but that doesn’t benefit the worker. This is more punitive for the employer to teach them a lesson, but it doesn’t provide financial support to you.
Clark Speaks: The reason I ask is that I’m picturing a person looking at a new job and thinking, “Should I work for this employer or not?” Does it matter if this person has the insurance needed to protect workers from accidents and injuries? What is your advice?
Brian Grosser: In a situation where you are in physically demanding work where injuries are more likely, I think it is a fair question to ask during the hiring process. Based on experience, I would say 75% of these cases where there is no coverage deal with construction—woodworking, painters, or electricians. You see a lot of “ghost policies” or policies that do not exist at all.
Clark Speaks: What is a ghost policy?
Brian Grosser: It is a policy that exists on paper, sufficient enough for a subcontractor to secure a job, but there isn’t really a policy there. They can show the general contractor a certificate, but when it comes time to pay a claim, there is no coverage. This protects the general contractor because they asked for the certificate, but it does not protect the injured employee.
Clark Speaks: So, if you are in construction or a physically demanding job, you should ask if they have coverage and ask to see the policy?
Brian Grosser: Yes. An employee can also go to the Industrial Commission website at www.ic.nc.gov. Under the “database” subsection, you can search for an employer’s name. It will show their insurance coverage for the past several years. If you see they don’t have current coverage, you know they probably don’t have workers’ comp. This coverage is vital for people to maintain their lifestyle and take care of their families after an injury. If you are familiar with Speaks Law Firm and feel uncomfortable about a job, give us a call. We can look it up quickly on the website for you. We want to make sure you are protected before a claim even exists.