Workers Compensation, Uninsured Motorist Coverage, and Subrogation Rights

A former employee was allegedly injured in an auto accident a few years ago. The insured's third party administrator worked the claim. The employee sued in an attempt to collect additional money from our underinsured motorist coverage  The insured asserted its subrogation rights to recover our workers compensation expenses from anything that the employee gets from the auto policy.

The employee's attorney directly sued the insured in an attempt to get the court to disallow our subrogation claim. The attorney points to language in the policy that states “this coverage shall not apply directly or indirectly to benefit any insurer or self-insurer under any workers' compensation, disability benefits, or similar law.” Since we are a certified self-insured company for workers compensation, he is making the claim that we cannot recoup our money.