I was a small business owner (restaurant). The business was sold over a year ago. Our workmens comp insurer is suing our corporation claiming we under reported payroll. They claim all cash payments were payroll. We didn't keep great records but we did have a payroll company do our payroll. The company is being sued for $11K. One attorney advised us to offer a minimal amount to settle or let them get a judgment against the corporation. Unfortunately he was unable to advise us of the law as it pertains to us being personally sued and if they can pierce the corporate veil to get to us. The case is ridiculous as there were no claims against the insurer and they lost no money to begin with. I would like to know what the best course of action would be and if there is anything we need to worry about out of the ordinary when it comes to insurance and workmens comp.