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7 Ways to Identify a Fraudulent Certificate of Insurance

August 1, 2015
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You've hired an independent contractor, and they've given you their certificate of workers' compensation insurance coverage. Then, an accident occurs, and your contractor is injured and needs care. Good thing you have that certificate of insurance to prove coverage. But upon further inspection, your insurer discovers that it’s a fraud. Not only is your contractor in violation of the Colorado Workers’ Compensation Act, but you as the employer could be liable for his or her coverage, which can be devastating to a small business.

You don’t want to find yourself in this situation. By learning how to identify a fraudulent certificate, you can protect your business from becoming “the scene of a crime.”

Signs of a Fraudulent Certificate of Insurance:

  1. Print date that's outside of policy effective and expiration dates
  2. Font inconsistency
  3. Misspellings and grammar errors
  4. Faint and/or crooked lines

These are just a few signs of a fraudulent certificate; see the rest for yourself. Producing a fraudulent certificate is a serious offense; in fact, it’s a class 5 felony. It’s nearly impossible for a fraud to go undetected, especially now that you are in the know. If you think you’ve received a fraudulent certificate of insurance, contact the insurance carrier listed on the certificate. If Pinnacol is the carrier, please call (303) 361-4000 and ask for our special investigations unit.

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