Spilman News Alert: Firm Helps Secure Important Ruling for BrickStreet       

 

Imagine the effect on the privatization effort and the stability of the workers' compensation insurance market in West Virginia if the standard workers' compensation insurance policy was held to give an insured employer coverage for "deliberate intent" claims even though the insured employer did not inquire about, request, or pay for such coverage. Imagine the risk management implications and the effect on premiums for workers' compensation insurers. Imagine the conversations insurers or their agents would have to have with insured employers. Imagine the exposure to workers' compensation insurers to claims for bad faith and violations of the West Virginia Unfair Trade Practices Act for those claims the insurer denied where the insured employer did not purchase "deliberate intent" coverage.

Fortunately, thanks to the efforts of West Virginia Employers' Mutual Insurance Company (BrickStreet) and the litigation team at Spilman Thomas & Battle, PLLC, workers' compensation insurers in West Virginia will not have to face these issues. In West Virginia Employers' Mutual Insurance Company v. Summit Point Raceway Associates, Inc., Slip Op. No. 101414 (W.Va. Nov. 18, 2011), the Supreme Court of Appeals of West Virginia addressed two key issues: 1) did BrickStreet have a duty to make an offer of "deliberate intent" coverage like automobile insurers must make for underinsured motorists' coverage; and, 2) was the Part Two - Employers Liability Insurance provision in the workers' compensation policy ambiguous, thereby leading to automatic coverage for "deliberate intent" claims? While the first issue affected BrickStreet only, the second issue was a much larger issue, and affected the entire West Virginia workers' compensation insurance market.

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You may also be interested in recent coverage of this topic by The State Journal, which can be viewed here.