Beware of Forged Certificates of Liability Insurance

I have heard horror stories of contractors using forged general liability Insurance certificates as proof of insurance. How can you tell if it’s fake?

1) Most all reputable insurance agencies use the industry standard Acord 25 form. Look at the bottom left of the insurance certificate.
It should say Acord 25. If it doesn’t you should be concerned.

2) On the Acord 25, look at the policy effective date and also the policy expiration date. If the dates are hand written or the font looks different than the rest of the document, you may have a fake.

3) Look at the name of the insurance company on the top right. Go to www.ambest.com and look up the insurance company. Look for the box that says “Ratings and Analysis”, type in the name of the insurance company and click “Go”. Do they really exist?

4) If you're not sure if the certificate is real, call the agent listed in the upper left hand corner. They should be able to tell you if the certificate is good.

Why should you care? If you hire subs with forged certificates, you may be liable for losses they cause. Fake certificates can leave you seriously exposed to losses and lawsuits that can destroy your company and take away everything you’ve earned. If you are competing for business with forgers, they may be able to underbid jobs. Make sure your prospective clients are aware of the risk!