OR IMD Published 2008 Defense Legal Costs Of Oregon WC Insurers' Report

Portland, OR (CompNewsNetwork) - The Oregon Department of Consumer and Business Services' Information Management Division released the 2008 Defense Legal Costs Of Oregon Workers' Compensation Insurers' Report. The data are given by insurer class (SAIF, private insurer, and self-insured employer) and cost type: attorney salaries and benefits, non-attorney salaries and benefits, other in-house costs, costs for retained counsel, and insurer-paid costs in support of retained counsel. Below are some of the findings of the report:

In 2008, Oregon workers’ compensation insurance carriers and self-insured employers (together, “insurers”) paid almost $32.4 million for attorney salaries, attorney fees, and other legal services incurred in accordance with Chapter 656, Oregon Revised Statutes. Insurer defense costs are primarily for defending the insurer against claims or benefits believed to be unwarranted; they may also include costs to represent the insurer in responsibility disputes (where the outcomes may not directly affect workers) and for services outside of litigation (such as negotiating claim disposition agreements). Defense costs are distinguished from fees paid to attorneys representing injured workers. 

For 2008, SAIF’s in-house costs were a typical 95.5 percent of legal costs.

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