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Fake Insurance Certificates – What Can You Do?

Fake Insurance Certificates – What Can You Do?

You are a contractor with a long list of contract requirements for your subcontractors. The most important item on that list besides tax forms is the insurance certificate. It is the one you have to chase some subs for, even resorting to withholding payment to get it. Technology has made getting insurance certificates easier than ever. However, new advances also make it even easier to produce fraudulent certificates. Here are some ways to know if the certificate you’ve provided is valid, and how to prevent your business from receiving invalid certificates. Anyone Can Fake A Certificate Any business can pass off a fake certificate under the right (or wrong) circumstances, even subcontractors you may consider to be honest to a fault.  Things happen, and businesses may find themselves in a bind.  Consider these scenarios: A subcontractor that you’ve worked with before runs into money troubles. His insurance lapses due to nonpayment, but he needs the work, so he doctors an old certificate to look current. The employee of a former subcontractor goes out on his own and can’t afford insurance yet, so he uses a copy of the certificate from his former employer to provide proof of coverage. Just a few keystrokes on his computer and he’s suddenly “insured”. He’ll buy coverage when he can afford it. A subcontractor purchases a bare bones policy and doesn’t want to pay for those fancy extras like primary & noncontributory endorsements or an additional insured, so he takes the certificate from his insurance agent and adds that wording in after-the-fact to meet your contract requirements. No one on that list is completely...