Not collecting COIs can inflate your payroll exposure and raise red flags during audits. If a subcontractor doesn’t have their own active workers’ comp policy, your business could be held liable for their injuries. Always request and verify up-to-date COIs for every subcontractor before they step on site. Keep copies of COIs for your records and set calendar reminders to follow up on expirations.
Fraud is a crime
If your application contains purposefully misleading, absent, or inaccurate information, you could be charged with fraud. Your insurance carrier could potentially void your policy, or you could face civil or criminal charges or penalties.
Any person who knowingly and with intent to defraud any insurance company or other person, files an application for insurance or statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent act, which is a crime.
