Indemnification: Uninsured Employers

MONTANA SUPREME COURT DECISIONS
State Farm v. Bush Hog, 2009 MT 349, 353 Mont. 173, 219 P.3d 1249 [10/21/09] An uninsured employer is prohibited from bringing either a contribution claim or an indemnity claim against a third party after settling with the injured employee.
State Farm v. Bush Hog, 2009 MT 349, 353 Mont. 173, 219 P.3d 1249 [10/21/09] The objective of the WCA is to provide no-fault, wage loss benefits to the worker who suffers work-related injuries.  This system fails to the extent that the employer refuses to provide workers’ compensation insurance for his employee in accordance with the WCA.  If this employer were then allowed to seek indemnity or contribution from a third party to reduce the damages he owes to the injured employee, the employer has no incentive to comply with the WCA.  Cost/benefit should not inform the employer’s decision to not purchase workers’ compensation insurance.  If the employer chooses to roll the dice and loses, his recompense should be a financially painful experience.
MONTANA WORKERS' COMPENSATION COURT DECISIONS