The Appellate Division has refused to let a construction company out of a settlement agreement reached with its insurer over unpaid workers’ compensation premiums as a result of misclassifying workers and understating payroll.

Hartford Underwriters Insurance Co. provided workers’ compensation insurance to Arch-Concept, a construction company, from May 2012 through January 2016, according to the appeals court’s opinion. On Nov. 4, 2016, Hartford filed a complaint against Arch-Concept for unpaid premiums due to understatement of payroll and misclassification of workers under the New Jersey Insurance Fraud Prevention Act. The claim for $583,665 in unpaid premiums was subject to treble damages under the IFPA.

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