The New Jersey Supreme Court ruled that an insurance broker has a duty to advise a limited liability company that a member actively performing services on the company's behalf is eligible for workers' compensation coverage, but the LLC must elect to purchase it.
Robert and Walter Friedauer owned Holmdel Nurseries, a business founded by their father that sold trees and other landscaping supplies. The brothers eventually formed a limited liability company, with each owning a 50% interest.
Robert Friedauer managed insurance issues for the LLC, and Daniel M. Purdy became the insuran...
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