- Massey Energy Corp., owner of the Upper Big Branch Mine
in West Virginia where at least 25 miners were killed April 5 in a methane
gas explosion, apparently arranged for and purchased disability compensation
insurance coverage only a month before the disaster, according to one source
with inside knowledge about the company's risk management operations.
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- Prior to that, the company, known for its aggressive
challenges to workers' comp claims, was self-insured for workers compensation.
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- But given the number of safety violations at its mines--53
at the Upper Big Branch Mine in March alone, and 495 in 2009--perhaps the
money spent buying insurance to cover workers' injury claims might have
been better spent fixing chronic problems with methane gas build-ups in
the mine.
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- The company certainly has not shown particularly good
judgement when it comes to its insurance decisions. Last year, despite
noting in its annual report that its operations were "subject to certain
events and conditions that could disrupt operations, including fires and
explosions," Massey Energy decided not to purchase business interruption
insurance, according to Business Week magazine....
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- For the rest of this story, please go to:
- http://www.thiscantbehappening.net
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