Legal Question in Workers Comp in California

Gap in Workers' compension coverage

I recently purchased a small business from a professional couple. I took over the office and two employess remained throughout the turnover. I requested insurance quotes from my agent before I took overthe office. She said that she couldn't get me a worker's comp. quote until the previous owner provided stop-losses and other information about the previous owner's policy. After requesting this info. from the previous owners at least ten times, I learned from another party that they did not have worker's comp. coverage for their two employees for the six years in which they owned the business. The rates I pay on my current policy are higher than what I could have paid if there had been continuity in coverage. Do I have any recourse against the previous owner? Is there a way to report them so that they have to insure their current employees?


Asked on 1/25/05, 2:59 pm

1 Answer from Attorneys
Ronald Mahurin Law Offices of Ronald Glenn Mahurin

contract

The issue you have outlined, I believe, is a contract issue relating to the sale of the business. I suppose the ultimate issue is whether there was any fraud involved, an intentional misrepresentation upon which you relied in purchasing the business.

My advise is to seek a consultation with a contract/ business law attorney and address the above. The costs of litigation may prohibit redress, but I am truly uniformed in this specific area of law.

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Answered on 1/25/05, 10:25 pm


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