Indemnification: Uninsured Employers

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.


Jacobsen Ranch Co. v. Dix, et al. [10/05/12] 2012 MTWCC 33 Petitioner is neither a self-insured employer nor an insurer but an uninsured employer; therefore, the remedy it seeks of reimbursement or indemnification is not available to it under § 39-71-407(5), MCA, as that remedy applies only between insurers.