From San Rafael’s flash floods in late February to an “atmospheric river” flooding the North Bay, Northern California has seen our share of rough waters in the last few months. And according to the Insurance Institute for Business and Home Safety, more than a quarter of businesses that close because of a disaster like a flood never re-open.
Insurance policies are notoriously dull to talk about but crucial to the operation, and even the survival, of a business. Every business needs to effectively communicate with insurance companies to protect their employees and their company. A recent decision by the U.S. District Court in Los Angeles, PAMC, Ltd. v. National Union Fire Ins. Co., Case No. 2:18-cv-06001-SVW-AS (C.D. Cal. Feb. 12, 2019), serves as the perfect example of how ignoring this "dull task" can turn into a potentially devastating liability.
Prosecutors in California say that a former licensed insurance agent stole more than $100,000 from small business owners and general contractors by selling them bogus workers' compensation policies. The 31-year-old man faces a raft of felony counts, including insurance fraud, forgery and grand theft. Prosecutors say the man used the money to cover gambling debts and buy luxury items such as designer clothing and sporting equipment. He was released from custody after posting bail in the amount of $100,000.