Under the Massachusetts Workers’ Compensation Act (the Act), employees hurt at work can often recover benefits from their employers. In most instances, such benefits are paid by insurance companies via workers’ compensation policies. If more than one policy covers an employer, though, the company paying benefits has a right to seek contribution from other insurers covering the loss, as demonstrated in a recent Massachusetts case. If you suffered injuries or contracted an illness due to workplace conditions, you might be owed benefits, and you should speak with a Massachusetts workers’ compensation attorney about your potential claims.
Facts of the Case
It is alleged that an employee suffered a severe injury during a business trip covered by two workers’ compensation policies from different insurers. He subsequently sought workers’ compensation benefits from his employer. The employer only notified the first insurance company of the claim. After initially covering the costs, the first insurance company later sought contribution from the second insurance company. The second insurance company refused the tender, leading the first insurance company to file an action for equitable contribution.
Reportedly, the second insurance company moved for summary judgment. The court granted the motion. The first insurance company appealed, and the trial court posed a certified question regarding workers’ compensation insurance policies to the appellate court. Specifically, the court questioned whether an insured party can choose which insurer defends and indemnifies a claim by intentionally tendering the defense to one insurer and not the other, thus precluding the insurer to which no tender was made from obtaining contribution. Continue reading →