Understanding the Role of the Workers Compensation Insurance Carrier

Understanding the Role of the Workers Compensation Insurance Carrier

Many injured workers in Alabama assume that once they report a job injury, the workers’ compensation insurance carrier will guide them through the process and make sure they receive the benefits they are entitled to under the law. This is not always the case.

Workers’ compensation insurance carriers are not neutral parties in a claim. They are businesses, and like all businesses, their primary responsibility is to their shareholders. Their financial success depends on collecting premiums and limiting the amount of money they pay out in claims.

That does not mean every workers’ compensation carrier acts unfairly. In our experience, there are some carriers that handle claims responsibly and work to ensure that injured workers receive appropriate medical care. However, there are also situations where insurance companies take a far more aggressive approach in an effort to minimize or deny claims.

Insurance Companies Do Not Represent the Injured Worker

One of the most important things an injured worker should understand is that the workers’ compensation insurance carrier does not represent you.

The adjuster assigned to your claim may sound helpful and professional—and many are—but their role is to represent the interests of the insurance company. Their job is to evaluate the claim, control costs, and limit the company’s financial exposure.

Settlement Decisions Can Have Long-Term Consequences

One area where this issue frequently arises is during settlement discussions.

Many injured workers assume that if the insurance company offers a settlement, the offer must be fair. In reality, settlement negotiations are just that—negotiations. The insurance company is trying to resolve the claim for as little as possible, while the injured worker hopes to receive fair compensation for their injury.

I once heard a defense attorney describe being contacted by a workers’ compensation adjuster who had already negotiated a settlement directly with an injured worker. The attorney was asked to finalize the paperwork for the settlement. According to the attorney, it was clear that the worker had agreed to a settlement that severely undervalued the claim. However, because the attorney represented the insurance company, he had a professional obligation to proceed with the settlement and could not advise the injured worker that the agreement was a mistake.

The injured worker had never spoken with an attorney.

The Insurance Company Is Not Your Source of Legal Advice

The worst way for an injured worker to learn about their rights under Alabama workers’ compensation law is to rely solely on information provided by the insurance company responsible for paying those benefits.

Again, this does not mean that every insurance adjuster is acting in bad faith. Many adjusters handle claims professionally. However, their job is not to protect the injured worker’s legal interests.

Understanding your rights under Alabama’s workers’ compensation laws is critical, particularly when issues arise involving medical treatment, work restrictions, or settlement of your claim.

Workers’ compensation insurance carriers play an important role in the system, but it is important for injured workers to remember that the carrier’s interests and the worker’s interests are not always the same.

If questions or disputes arise about your rights under Alabama’s workers’ compensation laws, it may be helpful to speak with an attorney experienced in handling job injury claims.  You may not end up hiring an attorney, but the workers’ compensation insurance carrier has a host of attorneys from whom they that they can ask questions-injured workers should at least talk with an attorney experienced in Alabama’s workers’ compensation laws to answer their questions.

If you have suffered a job injury and you have questions about your rights and benefits under Alabama’s workers compensation laws -don’t hesitate to contact and speak with one of the experienced Alabama Workers Compensation and Social Security Disability attorneys at Powell and Denny today for a free consultation. Appointments are available in person, or virtually via Zoom if more convenient.  Powell and Denny would appreciate the opportunity to help.  And remember, there is no fee unless you win.

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Powell and Denny have been selected as one of the Best Law Firms by U.S. News and World Report for each of the last 7 years, have been selected as one of Birmingham’s Top Lawyers by B-Metro Magazine for the last 3 years, have been selected by The National Advocates as one of the Top 20 Workers’ Compensation Firms (plaintiffs) and Powell and Denny, P.C.-has been selected as one of the “Best of the Best” law firms by The American Registry

Mr. Denny is AV rated by Martindale Hubbard (the highest rating possible) and Mr. Powell has been rated as Superior by The National Registry and selected as a Lawyer of Distinction.

+ Powell and Denny have successfully represented injured workers from Birmingham, Huntsville, Florence, Muscle Shoals, Tuscumbia, Athens, Decatur, Town Creek Ardmore, Hartselle, Madison, Toney, Scottsboro, Ft. Payne, New Hope, Guntersville, Albertville, Boaz, Ashville, Anniston, Gadsden, Cullman, Jasper, Gardendale, Morris, Kimberly, Centerpoint, Leeds, Tarrant City, Fairfield, Hueytown, Bessemer, Adger, Tuscaloosa, Cordova, Alabaster, Pelham, Harpersville, Opelika, Phenix City, Montgomery, Clanton, Calera, Enterprise, Monroeville, Mobile, Evergreen, Centreville, Brent, West Blocton, Woodstock, Brierfield, Lakeview and towns and cities in between.

Understanding the Role of the Workers’ Compensation Insurance Carrier