Union welfare fund alleges Berkley Insurance failed to pay nearly $100,000 in benefits for New Jersey public project workers
By Tez Romero
A union welfare fund is taking Berkley Insurance Company to federal court, alleging the insurer failed to cover nearly $100,000 in unpaid union benefits on a New Jersey public project.
The International Union of Painters and Allied Trades District Council No. 21 Welfare Fund, joined by the union itself and fiduciary Bernie Snyder, filed a complaint in the United States District Court for the District of New Jersey. At the heart of the dispute is Berkley Insurance Company’s role as surety for a public works renovation in Essex County, where the union claims a subcontractor default left workers without their contractually owed fringe benefits.
According to the complaint, Premier Construction LLC was a subcontractor on the Essex County Parks Administration Building Renovations project. Bound by a collective bargaining agreement, Premier was required to submit timely remittance reports and make fringe benefit contributions to the union’s welfare fund. The project was governed by a Project Labor Agreement, and Berkley Insurance Company stood as surety on the bond, with Tekcon Construction, Inc. as principal and the County of Essex as obligee.
The union alleges that Premier employed its members from May through September 2024 but failed to submit required reports or pay contributions for that period. The Welfare Fund says it first demanded the missing reports and payments in a letter dated October 30, 2024, but received no response from Premier.
On November 25, 2024, the Welfare Fund sent a formal Notice of Claim to Berkley Insurance Company, seeking $97,511.81 in unpaid contributions. Berkley acknowledged the claim by letter on December 2, 2024, and requested supporting documentation. The Welfare Fund asserts it provided additional documents on December 6, 2024, January 14, 2024, and April 1, 2025, but Berkley did not respond to the April or May 2025 follow-ups.
The complaint cites New Jersey statutes governing public works bonds, specifically N.J.S.A. 2A:44-143, which requires such bonds to guarantee payment to those supplying labor or materials. The union argues that its members, as beneficiaries of the bond, are entitled to the unpaid contributions, and that Berkley, as surety, is contractually obligated to pay.
The Welfare Fund and union are seeking a judgment against Berkley for all unpaid contributions, interest, and liquidated damages owed by Premier, along with attorneys’ fees and costs. The complaint frames the issue as a breach of contract, alleging Berkley has failed to honor its surety obligations under the bond, leaving union workers shortchanged for their labor on a public project.
No insurance policy clauses are discussed in the complaint; the dispute is rooted in the surety bond and statutory obligations under New Jersey law.
It is important to note that these are allegations only. The complaint has been filed, but no findings of fact or liability have been made by the court.