Be careful when reviewing certificates from your subcontractors. A fraudulent certificate recently resulted in a business owing an additional $100k on their workers compensation audit.
The business accepted a certificate from a subcontractor for work to be done in New York. The sub’s certificate showed he had workers compensation from a Michigan insurance carrier, and even listed that their was “All States Coverage”. However, after the certificate was reviewed by the business’ own workers compensation carrier, it was discovered that the Michigan carrier only covered claims within the state of Michigan. As a result, the business owed workers compensation premium on all the payroll generated by the subcontractor.
Make sure to review your certificates carefully and if you have questions ask your broker.