No Insurance Leaves You Open to Personal Liability
If an employee is injured on the job and files a workers’ comp claim, you can be personally liable for the injury if you do not have workers’ comp insurance. The corporate shield or a bankruptcy filing will not protect you from personal liability.
The New York State Workers’ Compensation Board vigorously enforces compliance with the Workers Compensation Law. Its agents check records, and more than ever, employers are facing sanctions for failing to maintain insurance for employees. The Board can assess penalties, shut down your business, or refer your case for prosecution.
Hiring an attorney is crucial if you do not have workers’ comp insurance and your employee files a claim. Although New York State has set up an “Uninsured Employer’s Fund” and the state will pay the medical bills and lost wages of your worker, eventually they will enter a judgment against you to recover its expenses. You will be personally liable along with your business.