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Workers’ Compensation: Are Your Clients Covered?

Workers’ Compensation Are Your Clients CoveredA story involving a Workers’ Compensation court case has recently made headlines. A New Jersey woman was injured at her workplace over seven years ago and promptly filed a claim against her employer, Yassien Mobility Assistance & Ambulance, Inc. However, her employer did not have the adequate insurance coverage to cover the claim. In the events that followed, damages had to be paid out from both companies over the course of several years. To safeguard your business against workplace injury liability, it is imperative your clients are equipped with a New Jersey Workers’ Compensation policy.

Janice Davis was injured on April 23, 2007 in an accident at work. However, upon filing a Workers’ Compensation claim, she discovered that her employer, Yassien, didn’t have adequate insurance coverage. The former insurance company who provided the coverage, Zurich American Insurance Company, claimed that Yassien had canceled its coverage a year prior to the accident, in March of 2006.

The Supreme Court ruled that the cancellation of the insurance will only be upheld if the protocol was strictly followed. For example, the New Jersey Office of Legislative Services section 34:15-81 requires that the notice of cancellation be filed in the Office of the Commissioner of Banking and Insurance in conjunction with a certified statement that the notice has been given. Any deviation from these statues will result in a void cancellation.

Since Zurich did not follow these guidelines, the policy cancellation was considered void by the court. However, Yassien did not argue this point until 2013, seven years after the initial cancellation, which resulted in an overturn by the Appellate Division ruling in favor of Zurich. They claimed that if Yassien had argued the issue immediately after the discrepancy occurred in 2007, their argument would have been valid. On May 5, 2015, the court case was finally settled.

At Associated Specialty Insurance Agency, we offer comprehensive and affordable Workers’ Compensation solutions to fit your client’s specific needs. With over twenty years in the business, we are experts in protecting every aspect of your client’s business and employees. To learn more about our offerings, contact us today at (866) 679-7457.

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