Insurance Agent's Conduct Determines Liability for Failure to Inform an Employer of Workers' Compensation Coverage Options

The NJ Supreme court held that the insurance agent's conduct must be a willful, wanton, or grossly negligent act of commission or omission for failure to advise an employer about workers' compensation coverage for a Limited Liability Corporation.

Limited Liability Corporation Is Bound by Election of Coverage for Members

The NJ Appellate Division ruled that the members of a Limited Liability Corporation had an affirmative responsibility to elect workers' compensation coverage. Since the corporation failed to do so, liability cannot be shifted to the Workers' Compensation insurance producer or the insurance company.