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Businesses allegedly suffered lack of insurance in California

An employer that has purchased workers' comp insurance from a false provider may be operating with a lack of insurance. In the event that an employee is injured while working, the lack of insurance may place a business in a very difficult financial situation. A California man was recently taken into police custody for allegedly selling fraudulent insurance to businesses.

The man was accused of providing both liability and workers' comp insurance to businesses, without having valid policies actually issued. The illegal practice of providing false insurance to an employer can place a business and its employees in a very difficult position in the event of an accident. He was charged for forgery including insurance and certificates, fraudulent conduct intended as theft and illegally transferring money.

A combination of multi-state officials cooperated together to investigate the potential perpetrator and collect evidence to make an arrest. Authorities claim that the man was involved in contract work with small-sized healthcare businesses where he purportedly sold fraudulent insurance coverage. The transactions may have cost the small companies thousands of dollars.

Although the California agent has been arrested and is held in police custody, investigators continue to seek out potential victims. A business owner who discovers they have been unknowingly operating with a lack of insurance may feel a mixture of anxiety and anger. When an employee requires workers’ compensation benefits and the business is not able to provide support through insurance they may face a difficult financial situation. An employer may seek out professional help as they navigate the process and attempt to protect their company assets.

Source: insurancejournal.com, "California Man Arrested, Charged with Selling Fake Insurance in Louisiana", , Aug. 21, 2014

Source: insurancejournal.com, "California Man Arrested, Charged with Selling Fake Insurance in Louisiana", , Aug. 21, 2014

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