Scam Alert: MIA Warns Small Businesses of Fraudulent Insurance Offers

Maryland News (2/20/2024) – The Maryland Insurance Administration (MIA) has issued a warning regarding a scam targeting small businesses in the painting, construction, and cleaning industries. The scam, brought to the attention of the MIA, primarily operates through email, text messages, or phone calls, offering to provide general liability or Workers’ Compensation insurance coverage.

Business owners are advised to exercise caution if approached with such offers and to refrain from divulging any personal or financial information or making any payments until the legitimacy of the offer has been confirmed. To safeguard against falling victim to fraudulent schemes, the MIA recommends several precautionary measures. The MIA advises to independently verify the contact information of the agent or broker purportedly making the offer. This can be done by utilizing resources available online or by accessing the MIA’s website. However, it is crucial to avoid using the contact details provided in the offer itself, as they may be fabricated.

To authenticate the legitimacy of an agent or broker, individuals are encouraged to utilize the “producer search” option on the MIA’s website at www.insurance.maryland.gov. This feature allows users to verify whether the producer is duly licensed and provides access to accurate contact information. Subsequently, contacting the producer directly using the verified information can help confirm the authenticity of the offer. Furthermore, it is recommended to verify the insurance company associated with the offer through online research or by consulting the MIA’s website. Once the legitimate contact information for the insurance company has been obtained, reaching out to them directly can help validate the quoted insurance coverage.

In the event of uncertainty or for additional assistance, affected individuals are encouraged to contact the Maryland Insurance Administration at 410-468-2000 or 1-800-492-6116. Additionally, concerns regarding potential fraudulent activities can be reported to the Fraud Division at 1-800-846-4069.

Story by multiple RFHC contributors