Frequently Asked Questions (FAQs)

If you have a question or concern regarding WSI programs or services you may find the answer under a link in this FAQ section. If you haven’t found an answer or are an existing policyholder with questions about your account, feel free to contact our Employer Services Department via email at wsiemployerservices@nd.gov

Legal

What should an employer do with regard to possible subrogation situations? Could WSI create a quick guide and make that available on our website for reference?

SUBROGATION OVERVIEW

NORTH DAKOTA LAW: N.D.C.C. § 65-01-09 provides that when an injury or death for which worker's compensation benefits are payable was sustained or caused by the negligence of someone other than the employer or a co-employee, the injured worker or the injured worker's defendants may seek compensation from the fund and bring an action at law for recovery of damages from the person responsible for the injury. WSI is subrogated to the extent of 50% of the damages recovered from a third party settlement, up to a maximum of the total amount it has paid or would pay in the future in benefits for the injured employee or his/her dependents.

The purpose for only allowing the fund to receive 50% of the recovery is to provide the injured employee and his/her attorney an incentive to pursue a potential claim against a third party.

WSI pays attorney fees and costs to claimant's attorneys who pursue these third party's responsible for causing injuries to the claimant according to the statute.

If the claimant does not bring a suit within 60 days from the date of injury, WSI may bring a legal action against the third party. If both the claimant and WSI do not bring an action against a third party, the employer may bring an action.

BENEFITS OF SUBROGATION:

The most obvious benefit of subrogation is that the person responsible for causing an injury to an injured worker ends up bearing some of the costs associated with such injury, rather than the employers of this state. Once a settlement is received from a third party, the amount reimbursed to WSI is credited to the employer's account.

IDENTIFICATION OF POTENTIAL SUBROGATION CASES:

- Motor vehicle accidents
- Criminal assaults
- Product liability cases - defective or unreasonably dangerous products
- Any machine, equipment, or appliance malfunction
- Slip and falls
- Exposure to toxic chemicals, fumes, dust, solvents, etc.
- Dog bites

*Should you have further questions on this subject please refer to the above statute or contact WSI Customer Service at 1-800-777-5033 and ask to be directed to the appropriate person in the legal department.