Business Services Industry

Legal Briefs: Independent contractor's injuries not covered.(Perspectives)

Business Insurance, June, 2003

A full-time worker who was hurt as an independent contractor for another company was not entitled to medical expense coverage under his employer's Employee Retirement Income Security Act health plan, the 6th U.S. Circuit Court of Appeals ruled. Michael Egan, a buyer of logs at Goodman Forest Industries, was injured while cutting trees as an independent contractor for Newland Logging Inc., which did not provide workers compensation insurance for him.

He filed medical claims with Goodman's ERISA plan administrator, but they were denied based on exclusions for workers comp-related injuries. He assigned a portion of his claims to the hospital that treated him. The hospital sued the plan but lost in trial court. The appellate court said the denial of coverage was...

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