OPINION & ORDER Plaintiff Hartford Fire Insurance Company (“Plaintiff”) brings this action against Queens County Carting, Inc. (“QCC”) and QCC Maintenance, Inc. (“QCC Maintenance” together, “Defendants”) alleging claims for breach of contract, accounts stated, and unjust enrichment after Defendants failed to pay premiums owed under workers compensation insurance policies. (ECF No. 5.) Defendants were due to answer the Complaint by April 6, 2020. (ECF Nos. 8 & 9.) On April 28, 2020, the Clerk of Court entered certificates of default for both Defendants. (ECF Nos. 16 & 17.) Presently before the Court is QCC’s motion to vacate the entry of default. (ECF No. 34.) For the following reasons, QCC’s motion is DENIED. BACKGROUND The following facts are taken from Plaintiff’s Complaint and deemed true for purposes of this motion. Plaintiff issued workers compensation insurance policies to Defendants. (Compl.
8-9.) Pursuant to the polices, Defendants agreed to pay certain premiums to Plaintiff. (Id. 10.) At the conclusion of the policy periods, Plaintiff attempted to perform an audit of Defendants’ books and records. (Id. 12.) Defendants originally represented to Plaintiff that they were engaged in “Janitorial” and “Real Estate Agent” business, however it was discovered that their actual business operations consisted of demolition, construction, sanitation, carting, and trucking, which would result in a higher classification code for their employees. (Id.) Defendants refused to cooperate with the audits, and therefore Plaintiff was entitled to re-code their employees to the higher rated classification code for garbage collectors and drivers. (Id. 13.) QCC then owed additional premiums of $209,889 and QCC Maintenance owed additional premiums of $286,679.40. (Id. 14.) Plaintiff has sent Defendants Final Insurance Bills setting forth the additional premiums owed and demanding payment, but Defendants have refused to pay. (Id.
