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

UPDATED: Jun 25, 2014

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Jun 25, 2014Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption