A dispute over unpaid workers’ compensation insurance premiums has led to a lawsuit seeking more than $75,000 in damages and other relief. The complaint was filed by LM Insurance Corporation in the United States District Court for the District of New Jersey on April 23, 2026, naming Diversity Business Group LLC as the defendant.
According to the filing, LM Insurance Corporation is an Illinois-organized insurance company with its principal office in Boston, Massachusetts. The defendant, Diversity Business Group LLC, is described as a New Jersey corporation based in Newark. The complaint states that jurisdiction is based on diversity of citizenship and that the amount in controversy exceeds $75,000 exclusive of costs and interest.
The legal dispute centers on a workers’ compensation and employers liability insurance policy issued by LM Insurance Corporation to Diversity Business Group LLC under the framework of the New Jersey Workers’ Compensation Insurance Plan. This plan exists to provide coverage for employers unable to obtain workers’ compensation insurance through voluntary market channels. The complaint explains that “the State of New Jersey enacted a residual or involuntary market known as the New Jersey Workers’ Compensation Insurance Plan (the ‘Plan’), for employers who cannot obtain workers’ compensation insurance coverage in the voluntary market.” Administration of this plan falls under the New Jersey Compensation Rating and Inspection Bureau (CRIB), which designated LM Insurance Corporation to provide coverage to Diversity.
On June 22, 2022, Diversity submitted an application for designation of an insurance company. By notice dated June 24, 2022, CRIB assigned LM Insurance Corporation to provide coverage effective from June 23, 2022 through June 23, 2023. The policy was subject to audit provisions requiring Diversity to maintain records necessary for premium calculations and to cooperate with audits conducted by LM.
The complaint details that after expiration of the policy period, LM audited Diversity’s records but alleges that “Diversity failed to provide all the requested information and documents.” This failure is characterized as non-cooperation under both the terms of the policy and relevant regulations. Following its audit process, LM determined there was an outstanding premium due from Diversity. On or about April 23, 2024, LM billed Diversity for this amount but reports that “Diversity did not pay LM the premium due for the Policy.”
The lawsuit includes several counts: breach of contract; unjust enrichment; quantum meruit (reasonable value); and breach of contract seeking specific performance. In its breach of contract claim, LM asserts it fulfilled its obligations by providing coverage but that “Diversity’s failure to pay the premium due on the Policy constitutes a breach.” For unjust enrichment and quantum meruit claims brought in alternative fashion, LM contends it provided valuable insurance services for which it was not compensated: “It would be unjust for Diversity to retain the value of the insurance coverage LM provided and for which Diversity did not fully pay LM.” In addition to compensatory damages covering unpaid premiums plus interest and costs of suit across these claims, LM requests specific performance compelling Diversity “to provide records needed to fully compute premium and otherwise fully cooperate with LM’s premium audit.”
The plaintiff is represented by Anthony J. Golowski II of Goldberg Segalla LLP in Princeton, New Jersey. The case identification number is 2:26-cv-04491.
Source: 226cv04491_LM_Insurance_Corporation_v_Diversity_Business_Group_LLC_Complaint_District_New_Jersey.pdf
