W hat H appens A fter F iling a W orkers ’ C ompensation C laim ?
After a work injury, it can be frustrating not knowing what comes next after filing a workers’ compensation claim. For over 30 years, I have represented injured workers in Illinois. In general, here’s what to expect after filing a workers’ compensation claim. Once a claim is filed with the Illinois Workers’ Compensation Commission (IWCC), the IWCC issues a notice to the employer that the claim has been filed. This notice formalizes what most employers often already know, since at this point, most employees have already reported their work-related injuries to their employer and their employer has reported the claim(s) to their workers’ compensation insurance carrier. Every employer in the state of Illinois is required to have workers’ compensation insurance (there are a few very small exceptions to that rule). If an injured worker hires an attorney, the attorney representing the injured worker seldom meets any representative of the employer. Claims are handled through insurance adjusters, claims examiners, or attorneys hired by the employer’s workers’ compensation insurance carrier.
During the time the injured worker is off work, they should receive two-thirds of their wages tax-free, the right to see two doctors of their own choosing (and any physicians to whom those doctors refer them), and payment of the medical bills incurred during these medical visits. From the moment the employer reports the work-related injury to their insurance carrier, there are professionals at work representing the interests of the insurance company and the employer. Hiring an attorney to file your claim merely levels the playing field, as the injured worker now has an informed advocate assuring that they can exercise all the rights that they’re entitled to.
If you or someone you know has been injured at work and is unsure if they’re receiving the benefits they need, feel free to contact us. We’re happy to help them navigate their claim.
– Jack Cannon
What Are Third-Party Bad Faith Insurance Claims?
Third-party bad faith insurance claims happen when a policyholder is sued by another party, and their insurance company steps in to defend them. While defending the policyholder in the lawsuit, the insurer must act in their insured’s best interests. However, if it fails to do so, the insurance company may expose their policyholder’s personal assets. Here’s an example that we’ve seen before. Let’s say Mary (the policyholder) blows through a stop sign in Chicago and hits Bob. Bob is transported to the hospital, where he’s admitted and undergoes surgery. He endures months of physical therapy. Soon after, Bob files a lawsuit in Cook County and names Mary as the defendant. The plaintiff (Bob) offers to settle the car accident lawsuit for Mary’s policy limit of $300,000. Bob has over $500,000 in medical bills and will never walk again. However, Mary’s insurance company outright refuses to respond to the plaintiff’s reasonable offer of compromise. Instead, it delays settlement and waits for the other party to offer to settle for less than the policy limit. Before long, the lawsuit ends up in front of a Chicago jury. The jury listens to both sides as witnesses and experts take the stand. Ultimately, the jury awards the plaintiff $1.25 million in monetary compensation for the damages he sustained as a result of the collision.
However, this award exceeds Mary’s policy limits of $300,000. Her personal assets have just been exposed. In this situation, Mary has the right to pursue a “failure-to-settle” bad faith insurance claim for the amount of the excess verdict. Her insurance company failed to settle the case before trial, despite the fact that the plaintiff’s medical bills exceeded the amount of her policy limits. In short, Mary’s insurer failed to protect her financial assets. Assignment of a Bad Faith Claim in Illinois Only a few states in America allow an injured third-party victim to file a bad faith lawsuit against the defendant’s insurance company. In Illinois, the policyholder can “assign” (or transfer) their right to pursue action against their insurance provider to the injured party. In the example above, Mary (the policyholder) would exchange her rights to a bad faith claim with Bob the plaintiff as long as Bob agrees not to execute judgment against Mary’s assets. This assignment can happen by a voluntary agreement between Mary and Bob. It can also be compelled by the court.
After the assignment is complete, Mary (the third-party and injured driver) can now pursue a bad faith claim against Bob’s insurance company.
– Patrick Anderson
2 www.shannonlawgroup.com
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