Other firms may cover Kmart’s workers’ comp claims

If self-insured Kmart does not come out of bankruptcy proceedings with sufficient funds to cover outstanding workers’ compensation claims, then other self-insured companies may have to step in. Although Kmart has US$174mn in bonds to cover such claims, even if they remain intact they are not expected to be sufficient. According to an article in the Wall Street Journal of 17 July 2002 most states have laws requiring other self-insured entities to cover any unpaid claims by a failed self-insured company.