Liberty Mutual wins $3.6M in premium lawsuit

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Warning for employers who misclassify employees or misrepresent the nature of work performed.

Insurance Journal is reporting that Liberty Mutual Insurance Co. has won a case against an employer who refused to pay an additional $3.64 million in workers’ compensation premiums. This dispute arose after a payroll audit showed more high risk employees than were originally claimed.

This is a fascinating article because it shows how insurance companies set premiums and what happens if a problem occurs. Our law firm currently represents a man who fell off a roof and is now paralyzed. The employer misrepresented the nature of its work and now the insurance company is refusing payment.

Michigan law requires employers to purchase workers’ compensation insurance. Premiums are typically based upon the number of employees and nature of work performed.

Some bad employers try to game the system. Premium fraud occurs when an employer intentionally under reports the number of its employees and/or does not accurately describe the type of work performed. Employee misclassification occurs when a company wrongly says a person is an independent contractor.

Sick and disabled people do not disappear when no insurance coverage exists. Government programs like Medicaid and Medicare end up with the tab. Private health insurance also pays resulting in higher costs for everyone.

Employers without insurance are still liable for payment of workers’ compensation benefits. Officers and directors of the company are personally liable.

Warning signs that an employer does not have valid insurance are a refusal to submit a claim and promises to pay benefits under the table. It is important to contact an experienced lawyer if the employer or insurance company refuses payment.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.

Related information:

My boss has no workers comp insurance! Now what?

Photo courtesy of Creative Commons, by free pictures of money.

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.