On Tuesday a case was filed in the New York Eastern District Court, by Wausau Business Insurance Company against Clove Lakes Health Care and Rehabilitation Center, Inc. The case is regarding breach of contract and failure to pay workers compensation premiums.
Worker’s compensation insurance is mandatory for employers with over 2 employees. However, employers that can have a fluctuating head count can find having to pre-pay for the coverage to be an imposition. Wausau entered into a contract with Clove Lakes to provide coverage with premiums determined retrospectively as a result of audits of the Clove Lakes employment rolls.
Due to the time required to conduct these audits, adjustments can be due and owing multiple years after the year for which the policy covered. In 2021, Clove Lake defaulted and failed to pay its premium, the complaint said.
The plaintiff is suing for damages regarding this breach of contract. Plaintiff is represented by the firm of Jaffe & Asher.
