Premium Fraud: Cutting corners by cutting premiums lands them in deep water

This insured company presented themselves to their insurer as a pool cleaning and repair company to keep their premiums low, but was suspected of actually building pools.

Investigation by our SIU confirmed the employer was actively doing construction work, including decking and swimming pool construction, although they claimed all pool building was done by subcontractors.

An ensuing investigation by the DA’s office resulted in the filing of felony charges; the owner pled guilty to 4 felony counts including workers’ compensation fraud. Estimated cost savings: $35,857.