ICW Group’s Special Investigations Unit (SIU) has seen an uptick in cases wherein our Policyholder was provided with a fabricated or falsified Certificate of Insurance (COI) document from an entity with which they contracted to do business. Cases have occurred in staffing companies, businesses in construction-related trades, and in the healthcare industry.
A business might provide a falsified COI for several reasons, though all are unethical and illegal. Most instances involve an ill-conceived financial motive. Other potential motivators include regulatory compliance, contractual requirements, and efforts to dodge legal liability. Regardless of why the perpetrator decides to commit the fraud, multiple parties are adversely impacted—the injured worker, the unknowing business, the perpetrator’s peers, and eventually, everyone within the workers’ compensation system.
When you engage with a business and require them to maintain their own workers’ compensation coverage, validating the COI they provide may prove advantageous.
A COI provides many important pieces of information. Here’s an example of what you’ll find:
Many states offer another potential source of information for workers’ compensation coverage identification. Although each state’s website is formatted differently and may require slightly different search inputs, they each offer basic information that can be used to support confirming coverage. Furthermore, thirty-two states can be searched using the free National Council on Compensation Coverage (NCCI) coverage verification tool.
Here’s how to utilize NCCI’s verification tool
- Visit the Workers’ Compensation Verification Coverage website and review and accept the terms and conditions.
- Use the search tool to enter employer information, such as name, state/federal tax identification number, or address.
- Upon receipt of the search results, identify the company you want to follow and click “Track Policy.”
- Enter your email address and confirm your email.
- Once verified, check your inbox for notifications of any coverage change. Be advised that it can take up to two weeks before notification of a policy’s cancellation is received.
States not actively participating in the NCCI’s verification tool can be searched similarly at the linked addresses: California, Florida, Kentucky, Michigan, North Carolina, Pennsylvania, New Jersey or Wisconsin.
Always Double-Check!
While the resources we’ve listed are a great start for gathering information, always double-check with another source to validate. Your agent, for example, can also be a great resource.
Current and future Policyholders are encouraged to visit ICW Group’s website to learn more about how our SIU team can partner with you to fight fraud!
