Section 287.280 RSMo. allows the Division, after hearing, to revoke the right of an employer to self-insure if the Division finds that the employer is “willfully and intentionally violating the provisions of (this chapter) with intent to defraud their employees of their right to compensation.” If the self-insured employer fails to comply with Section 287.280, an injured employee may elect to bring an action against such employer to recover for damages for personal injury or death, and the employer is not allowed to argue the comparative fault of the employee or the fault of a co-employee, or that the employee had assumed the risk of injury.
If a self-insured employer defaults on making a payment that should be made to an employee under the workers’ compensation law, that employee can make an application to the Division and if the employee proves that the employer is indeed in default of any payment obligation, the Division will then require the employer to provide security for the payment of compensation. If the employer still refuses, then all compensation due the employee gets commuted and becomes immediately payable.
Section 287.860 RSMo. sets up “The Missouri Private Sector Individual Self-Insurers Guaranty Corporation.” All individual self-insurers must be a member of the organization. If the employer cannot pay their obligations or goes bankrupt, the Guaranty Corporation steps in to cover the obligations of the employer. However, an employee of a bankrupt employer must file a claim with the bankruptcy court and get any payments from the bankruptcy action before the Guaranty Corporation has to make any payments. If you think that your self-insured employer might be filing for bankruptcy, it is vital that you contact an attorney immediately.
In summary, there are many safeguards in place to protect employees from the poor claims practices or the insolvency of their self-insured employer. If you are having problems with your self-insured employer in providing you with your legal workers’ compensation rights, you should call an attorney immediately. We are happy to help here at Bollwerk & Associates.