Is It Illegal

[FNP Services]

What is the name of your state? Florida

I have a contractor that I use for services in Florida. One of the terms of our agreement was that they had to carry an insurance policy that was kept up to date. This contractor faxed me a copy of their insurance policy and everything looked legit.

Well, about 2 weeks ago I was conacted by a customer that this particular contractor was assigned to stating that the work was done incorrectly and that he wants reimbursed for damages to the tune of 30K. The first thing I did was pull the contractors file and verify his insurance.

When I contacted the insurance company I was advised that the policy limit would not cover that amount and that in fact the contractor had falsified the copy of the policy that was sent to me by changing the policy limit. The insurance company would not state the exact limit of the policy however, I was advised that the claim amout would exceed the policy limit.

I have been searching many websites and even went to the state website that listed financial laws and penalties however, it seems like what this contractor did carries no punishment b/c they did not actually defraud an insurance company or get any type of restitution.

Can sombody please shed a little light on the situation and let me know if what this person did was illegal.

Originally Posted by FNP Services

What is the name of your state? Florida

I have a contractor that I use for services in Florida. One of the terms of our agreement was that they had to carry an insurance policy that was kept up to date. This contractor faxed me a copy of their insurance policy and everything looked legit.

Well, about 2 weeks ago I was conacted by a customer that this particular contractor was assigned to stating that the work was done incorrectly and that he wants reimbursed for damages to the tune of 30K. The first thing I did was pull the contractors file and verify his insurance.

When I contacted the insurance company I was advised that the policy limit would not cover that amount and that in fact the contractor had falsified the copy of the policy that was sent to me by changing the policy limit. The insurance company would not state the exact limit of the policy however, I was advised that the claim amout would exceed the policy limit.

I have been searching many websites and even went to the state website that listed financial laws and penalties however, it seems like what this contractor did carries no punishment b/c they did not actually defraud an insurance company or get any type of restitution.

Can sombody please shed a little light on the situation and let me know if what this person did was illegal.

Sounds like the carrier violated a term of your contract which is not a crime.

[Richie0523]

Originally Posted by FNP Services

When I contacted the insurance company I was advised that the policy limit would not cover that amount and that in fact the contractor had falsified the copy of the policy that was sent to me by changing the policy limit.

Isn't that illegal?

[smalltownsara]

My state = Massachusetts

just so that we're clear, i am a student that is currently enrolled in a business law course and NOT any sort of a legal expert. however, we are currently examining contract law and how it affects business operations, so here's what i think:

looks like you'd have to foot the bill for the damages because of their falsification. unfortunately you cannot make the insurance company pay for damages. however you COULD sue the contractor for the amount that you are required to pay because of their intentional fraud at the time the contract was established. since they falsified important information that directly affected your decision to do business with them, they are responsible for that financial burden and the courts would probably decide in your favor.

i'd reccommend seeking legal advice from a lawyer that specializes in contract law.

hope that helps!

[InsuranceLadyAZ]

You should absolutely sue the contractor for your damages. Furthermore, I would send a copy of his fraudulent COI (certificate of insurance) to his carrier and agent. I'm sure they'd LOVE to know what he's been up to and will probably drop him just for doing that.