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Dennis Perry Homes Inc. v. Companion Property & Cas. Ins. Co.

In granting summary judgment to the plaintiff insurance company on its claim for premiums due under a workers' compensation policy, the trial court did not err in ruling that no factual issue existed as to whether the defendant was the statutory employer of the workers identified in the plaintiff's audit.

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Dennis Perry Homes, Inc. Perry appeals from the trial court’s grant of summary judgment to Companion Property & Casualty Insurance Company Companion on Companion’s claim for premiums due under a workers’ compensation insurance policy. For the reasons discussed below, we conclude there was no error and affirm. The record shows that Companion issued the workers’ compensation insurance to Perry under an “assigned risk” policy because Perry was unable to obtain insurance on the open market. All insurers that write workers’ compensation policies must participate in insuring companies in the assigned risk pool.

Based on the information supplied by Perry, Companion wrote the policy with an initial premium of $750. However, workers’ compensation premiums are based on the actual amount paid to workers, therefore the actual policy premium cannot be determined until after the policy term. In its answers to interrogatories, Perry stated that its estimated payroll for employees was zero, and also stated that it was not informed that it should list contractors and subcontractors for purposes of workers’ compensation insurance.1

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