Strategic HR Lawyer

Thanks to the The Workers' Comp Insider for providing this analysis of a recent Supreme Court decision concerning unpaid workers' compensation claims in bankruptcy.  In Howard Delivery Service, Inc., et al v. Zurich American Insurance Co., Zurich claimed that since workers' compensation insurance is an employee benefit, that it should be given priority, like other benefits in corporate bankruptcy.  A provision of the Bankruptcy Code assigns priority to unsecured creditors' claims for unpaid benefit plan premiums.  However, the Supreme Court ruled that these premiums do not qualify. As a result, workers' compsation insurance carriers will go to the end of the line in their efforts to collect unpaid premiums.  For more on this case, in addition to the Workers' Comp Insider's analysis, you can view the entire opinion here and another article presenting the insurance industy's view here.