“Trust, but Verify.”



“Trust, but verify.” – President Reagan to Mikhail Gorbachev


I’ve rented cars, homes and even farm machinery, but I never knew you could “rent” a workers’ comp certificate.


Seems that worrying about rogue providers, malingering employees and greedy Big Pharma is not enough. Now we have to watch for bogus coverage certificates.


This new scheme to defraud the industry was recently uncovered by the Florida Department of Financial Services with the announcement of multiple arrests for insurance fraud. The scheme works like this:

  • Clean, but unscrupulous individuals agree, for a fee, to serve as legal but absent business owners;

  • After deflating estimated payrolls, the business puppet-masters buy low cost comp policies;

  • These certificates are then “rented” to random contract work crews who present the official looking documents to unsuspecting clients;

  • Employees and the generals who hired the contractors have NO coverage for on-the-job injuries.


It always makes sense to “trust but verify” in every aspect of one’s enterprise. Make sure you have a reputable professional to guide you in the ever-growing complexities of the workers’ comp system.


Call us. We can do better.

William Faris, JD
Chief Executive Officer

Posted in Bill's Favorite Files, OMCA