From San Fernando Valley Business Journal-Waterproofing Company Owner Accused of Insurance Fraud

Reposted Here from SFVBJ-

Business Owner Accused of Insurance Fraud

By Jessica Vernabe

Monday, December 20, 2010

The owner of a Tarzana-based painting business has been arrested on suspicion of insurance fraud, the California Department of Insurance announced.
Abraham Dvir, 66-year-old owner of United Painting and Waterproofing Company, was arrested on four felony counts of premium fraud. Dvir is accused of falsifying payroll reports between 2006 and 2009 in order to reduce the cost of insurance premiums.
The alleged misrepresentation led to a loss of about $112,000 in workers’ compensation premiums by the State Compensation Insurance Fund over the four year period, the department said. Dvir could face up to 15 years in prison and up to $236,000 in fines, if convicted.
The insurance department’s fraud division received a suspected fraud referral from the State Compensation Insurance Fund in February, which was followed with an investigation. Dvir surrendered to the Los Angeles County Sheriff’s Department after a warrant was issued for his arrest on Dec. 16.

HOA's; YOU CAN SAVE A LOT OF MONEY BY HIRING UNLICENSED/ UNINSURED CONTRACTORS! Then you too can be liable for a workers injuries!

I saw this article at Community Associations Network (CAN). If you are an HOA, and don't make sure your independent contractors are licensed and insured, you'll deserve the same fate as these folks got...

Heimen et al. v Worker's Compensation Appeals Board

HOA Should Be Sure Workers are Insured California homeowner associations (HOAs) and HOA management companies will want to pay attention to a recent ruling coming out of the state's Second Appellate District. The case, Heimen et al. v Worker's Compensation Appeals Board, involved the claim of a worker injured on association property for worker's compensation benefits. Read more by clicking here.

So the lessons are that any contractor who will be working on your property must have;
workers comp
licensed
liabilty policy naming HOA as add'l insured
Auto Insurance.

You can get extra protection by buying a add on workers comp policy for around $500-1000 per year. Then if someones coverage was lapsed and something happened, you would still be covered. Your choice, pay a little or pay a lot...