Can my company be denied access my state’s insurance fund if one of my employees owes the state money?

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Can my company be denied access my state’s insurance fund if one of my employees owes the state money?

I am the sole owner of a corporation. I have recently needed to forfeit all projects due to the inability to obtain WC insurance. My current policy expired and the company was unwilling to write my field for a second year. I shopped every market and was unable to find a carrier that was willing to write a policy. I have resorted to my state’s insurance fund who has declined me because of a debt one of my employee owes. Let me be very clear, I am 100% owner and have 100% control of my company. They have no right to extort money from me and deny me coverage due to a debt neither myself nor my company have association with. This employees debt was incurred in 2007, which was 3 years prior to me opening my business.

Asked on June 25, 2014 under Insurance Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states in this country your company cannot legally be denied access to your state's insurance fund if one of your employee's owes the state money. This financial obligation is an issue between the state and your employee alone and does not involve your corporation.


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