At MEM, we care about the safety and security of our policyholders. One way to protect your business is by being alert to fraud, especially when it comes to fake Certificates of Insurance (COIs). A fake COI can put your business at risk, so knowing how to spot one is important.
Why COI fraud is serious
Creating a fake COI isn’t just wrong—it’s illegal and can be charged as a felony. Some businesses or subcontractors might fake certificates to avoid following the law, win contracts, or skip paying for proper insurance. Partnering with a company, contractor or subcontractor using a fake COI can leave your business responsible for work-related accidents, injuries, or claims. Before any work begins, it’s important to take time to verify the COI.
How to spot a fake Certificate of Insurance
- Look at how it appears. A real COI should look neat and professional, with straight lines and clear formatting. If it looks like a photocopy or seems altered, it could be fake.
- Check for consistency. The font type and size should be the same throughout key sections like the producer, insured name, policy number, and certificate holder. If the fonts don’t match, it’s a warning sign.
- Pay attention to spelling mistakes. Fake COIs often have spelling errors. For example, instead of “MEM,” a fake COI might list another name like “M.E.M. Insurance” or other slight variations. These little errors are a sign the document could be fake.
- Check the lines. If the lines on the document look crooked or faint, that could mean it’s been tampered with. Crooked or unclear lines are a big clue that something isn’t right.
- Review the policy number. Each insurance company has its own format for policy numbers. If the number doesn’t match the format you expect or looks altered, investigate further.
What to do if you think a COI is fake
- Verify coverage. Use tools like the National Council on Compensation Insurance (NCCI) or state websites to check if the policy is real. You can search by the company’s name, tax ID, or address.
- Track the policy. Many websites let you track the policy. This way, you’ll get an email alert if the policy is canceled or changed.
- Get expert help. If you’re still unsure, talk to your insurance agent or our team at MEM. We can help you confirm whether the COI is legitimate.
Stopping COI fraud is all about staying alert and protecting your business. Before any business or subcontractor is allowed to complete any work, take the time to carefully check documents, use verification tools, and work with trusted insurance agents. These steps will help you avoid unnecessary risks and keep your business protected.
At MEM, we’re here to support you. If you need help verifying COIs, contact our Customer Care team at 1.800.442.0593. Together, we can ensure your business stays safe from fraud and liability.
Our Special Investigative Unit is dedicated to reviewing claims with details that just don’t add up. If you suspect fraud in your workplace, report it right away by calling 1.800.442.0592 or through our online form.