Most recently, the trucking industry has faced an alarming rise in fraudulent Certificates of Insurance (COIs) used by motor carriers to secure loads. This growing trend threatens the integrity of brokerages and the financial and operational security of the entire supply chain.
Fake or altered COI documents presented by motor carriers are used to falsely demonstrate they have adequate insurance coverage. These documents often include fabricated policy numbers, incorrect coverage amounts, spelling errors, excluded information (for example, “claims made” or “occurrence” is not checked under General Liability), no cargo limit indicated, false endorsements, or a fake insurance company name providing the coverage.
In the last two months alone, the frequency of such fraudulent certificates circulated has increased noticeably. This alarming trend places brokers, shippers, and end customers at significant risk as loads are dispatched based on falsified information, potentially leaving liabilities uncovered.
The following steps should be taken to ensure legitimate COIs:
- COIs should come directly from the insurance agency or broker. At Western Truck Insurance Services, we will provide the COIs you request directly to the party requesting it.
- Contact us directly for verification: As the listed insurance agency on the COI, we will confirm its authenticity. We will also verify that the policy is active, the coverage limits meet the brokerage’s requirements, and all details match the carrier’s information.
- For scheduled vehicle auto liability policies, be sure the COI includes the vehicle VINs covered under the policy. This step ensures only the insured vehicles are utilized to transport your loads.
- Before dispatching a load, the broker should cross-check the power unit’s VIN with the insured vehicles listed on the COI. This final verification step prevents uninsured vehicles from handling loads.
About Western Truck
Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do, too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.