Dear Insurancegal, The McDonalds coffee incident was by no means a frivolous suit. The coffee was at 190 degrees F and there were over 700 documented complaints about the coffee being too hot (at that temp it burns and destroys human flesh). The claimant offered to settle out of court for $20,000 and the defense attorneys said “no deal” so it went to trial, huge punitive damages were awarded, case was appealed, and was finally settled for an undisclosed six figure amount. Interested in the facts? Email me at darnovak@msn.com and I will FAX or email you a copy of a recent article in a professional insurance publication. Stop repeating garbage you read in the enquirer or star or overheard at the local coffee shop.
Please help me to understand this, unless the article is missing some information. This just doesn’t make sense a company is in business and doesn’t realize that they need to carry workers compensation for their employees. Granted the agent should have done a better job of documenting, a court wants us to believe that an employer is that stupid. Come on you have got to be kidding right?
The Accounting firm never saw a WC premium entry? never did an Audit? The local town never issued a office inspection or permit for the business to even operate and didn’t get a copy of the WC policy? Just how long has business been around and how many agents have they previously dealt with over the years? Commercial AUTO and Group Health ASK for the WC information! SOunds like scammers to me !
What is said between the parties, what is heard between the parties, probably should be documented by “camera” mounted by the a/c registers in every office. Or, on the walls of cubicles. Also in the entry ways, as employees and clients enter and leave. Sometimes we forget to come back and doc our management systems. Or, write on the activity sheets on the left side of the folders. It’s the nature of the business. However, as Truman said, “if you can’t take the heat, ……”. We’re being asked to become Robots, I guess. We’re way past 1984! Yet, I’m reminded of it everytime I stop for a Red Light. It has helped London. Cannot have a cop in every street corner or a Quality Assurance Person in every insurance agency, or can we? Missteps cost plenty “Mucho Dinero”. Gotta live with the Eye-in-the-Sky.
Doesn’t the state have any cheks and balances to control the rights of workers? In NY the Worker’s Comp board tracks all employers by their NY State unemployment number which ALL business are required to obtain. If they do not get verification of W.C. & disability coverage you get a lovely invitation to send them bucks. I’ve seen fines go as high as 20,000 for failure to maintain continuous coverage.
Why should the insurance agent be held responsible if someone didn’t get insurance. Is it up to the insurance agent to tell insureds what they need? There are all sorts of reasons here why the business should have been held totally at fault. Worker’s comp is one of the required coverages and they didn’t know that they didn’t have the coverage. Come on folks – guess California doesn’t treat its businesses as adults – need to have their hands held by everyone else. What a bunch of hooey…
Ahh welcome to the wonderful world of CA law. It matters not how obvious something is unless it is in writing (and sometimes not even that works) we award stupidity.
Can I remind everyone of the McDonalds claim where a woman burned herself on a hot cup of coffee but was then awarded a ridiculous amount of money because the cup didnt have “Caution Hot” in writing on it?
Our agency suffered a claim where one of our UW’s had clearly in writing put “we can not cover this exposure, there is no coverage in force” and the insured later suffered a loss and claimed they had taken that to mean that there was coverage…our E&O paid out $200k on that claim. In CA the party that can afford the loss is the one that pays for it.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
Dear Insurancegal, The McDonalds coffee incident was by no means a frivolous suit. The coffee was at 190 degrees F and there were over 700 documented complaints about the coffee being too hot (at that temp it burns and destroys human flesh). The claimant offered to settle out of court for $20,000 and the defense attorneys said “no deal” so it went to trial, huge punitive damages were awarded, case was appealed, and was finally settled for an undisclosed six figure amount. Interested in the facts? Email me at darnovak@msn.com and I will FAX or email you a copy of a recent article in a professional insurance publication. Stop repeating garbage you read in the enquirer or star or overheard at the local coffee shop.
Didn’t anyone ever ask the company why it wasn’t aware that it never paid any work comp premium? Probably not relevant in a California court.
Please help me to understand this, unless the article is missing some information. This just doesn’t make sense a company is in business and doesn’t realize that they need to carry workers compensation for their employees. Granted the agent should have done a better job of documenting, a court wants us to believe that an employer is that stupid. Come on you have got to be kidding right?
I hope this case is appealed. This verdict is outragious.
The Accounting firm never saw a WC premium entry? never did an Audit? The local town never issued a office inspection or permit for the business to even operate and didn’t get a copy of the WC policy? Just how long has business been around and how many agents have they previously dealt with over the years? Commercial AUTO and Group Health ASK for the WC information! SOunds like scammers to me !
What is said between the parties, what is heard between the parties, probably should be documented by “camera” mounted by the a/c registers in every office. Or, on the walls of cubicles. Also in the entry ways, as employees and clients enter and leave. Sometimes we forget to come back and doc our management systems. Or, write on the activity sheets on the left side of the folders. It’s the nature of the business. However, as Truman said, “if you can’t take the heat, ……”. We’re being asked to become Robots, I guess. We’re way past 1984! Yet, I’m reminded of it everytime I stop for a Red Light. It has helped London. Cannot have a cop in every street corner or a Quality Assurance Person in every insurance agency, or can we? Missteps cost plenty “Mucho Dinero”. Gotta live with the Eye-in-the-Sky.
Seems to me that both the company and the agency (come on, no documenation about this coverage issue at all?…That’s nonsense!!) should get hammered.
It is funny that insurance people like us always believe that insurance people can do no wrong (like in this case).
Doesn’t the state have any cheks and balances to control the rights of workers? In NY the Worker’s Comp board tracks all employers by their NY State unemployment number which ALL business are required to obtain. If they do not get verification of W.C. & disability coverage you get a lovely invitation to send them bucks. I’ve seen fines go as high as 20,000 for failure to maintain continuous coverage.
I’m glad I don’t work in Cal.
Why should the insurance agent be held responsible if someone didn’t get insurance. Is it up to the insurance agent to tell insureds what they need? There are all sorts of reasons here why the business should have been held totally at fault. Worker’s comp is one of the required coverages and they didn’t know that they didn’t have the coverage. Come on folks – guess California doesn’t treat its businesses as adults – need to have their hands held by everyone else. What a bunch of hooey…
Ahh welcome to the wonderful world of CA law. It matters not how obvious something is unless it is in writing (and sometimes not even that works) we award stupidity.
Can I remind everyone of the McDonalds claim where a woman burned herself on a hot cup of coffee but was then awarded a ridiculous amount of money because the cup didnt have “Caution Hot” in writing on it?
Our agency suffered a claim where one of our UW’s had clearly in writing put “we can not cover this exposure, there is no coverage in force” and the insured later suffered a loss and claimed they had taken that to mean that there was coverage…our E&O paid out $200k on that claim. In CA the party that can afford the loss is the one that pays for it.