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April 25, 2024
California Department of Industrial Relations and Cal/OSHA Will Honor Workers’ Memorial Day at Four Events in California on April 28th-29th 2024. Cal/OSHA Joining Partners in Arcadia, Richmond, San Diego and San Francisco.

April 23, 2024
California Division of Workers' Compensation Launches Online Portal for Submission of QME Medical-Legal Reports

April 22, 2024
California Division of Workers’ Compensation Posts Updated Time of Hire Notice

April 22, 2024
Sullivan on Comp Launches ChatSOC. It's an Innovative Chatbot for California Workers' Compensation Professionals Integrated with an Authoritative Legal Treatise

With Congressional probes into security leaks before 9/11 and the call to create a new cabinet level office for Homeland Security, a federal backstop for insurers is getting buried deeper with each passing day. A renewed attempt is underway to breathe life back into federal reinsurance legislation. Gaining momentum is the notion that lawmakers should approach such legislation on a line-by-line basis.

First up for the a la carte backstop legislation should be workers’ compensation according to M.R. Greenberg, American Insurance Group Inc., (AIG) chairman and chief executive officer. In an editorial published by The Washington Post, June 5, Greenberg builds a strong case in support of his call for Congress to start off by reinsuring workers’ compensation.

The issue of punitive damages has hindered the progress of any federal backstop bill thus far. Greenberg pointed out though, that punitive damages aren’t part of the equation for workers’ compensation. So at the least, Congress should act to prevent an economic catastrophe in the workplace.

He emphasized the huge risk associated with insuring companies that have large numbers of employees concentrated in a few locations. These locations have become the prime targets for terrorists. From 9/11 alone the estimated payout for insurers and self-insured employers for workers’ compensation claims will end up in the $2 to $3 billion range.

Greenberg said that a larger scale event is possible, especially if chemical, biological or nuclear weapons are used.

“As difficult as it may be to think in such terms, an incident at a single complex of 10,000 employees could result in a $50 billion loss. Just do the math if 100,000 employees are involved,” he said.

Sept. 11 changed the risk profile of the American workplace. Whether insurers and employers have the best intentions to cover the financial scope of loss from another attack, there is a limit beyond what they can cover.

Greenberg said, “We owe the millions of Americans who courageously returned to their jobs following Sept. 11 nothing less.”