As a client to different service providers coming to your premises, you should always ask for proof of General Liability, Workers Comp etc – But sometimes you may think that this is enough but figuring out if their quote is legit may be one of the best way to know if the company is doing proper business. A lot of companies that can afford to give you the CHEAPEST price can only do so because they are SERIOUSLY doing illegal stuff. After a business pays employees, pays overhead etc there is little left for the bottom line – sometimes less than 15% depending on the company and the service provided. So when you request quotes from 2 or 3 companies and you get that really cheap price please be aware. The only reason why small / medium size companies can provide a very low cost is only if they are paying their employees under the table, are illegally hiding costs or in this case (see link) they are inappropriately misqualifying their employees to pay less workers compensation fees (or general liability / bonding insurance).
Why do we care? Because not only do we compete with these companies on a daily basis but they are also doing a terrible thing for our communities. When these companies hire under the table, misqualify employees and compete on price they are not taken care of their clients and or their employees—they only seek to make a profit and move on. These type of situations have a huge impact on our local communities and its nearly impossible to stop them unless the market place pays attention.
Check this article that came out http://patch.com/massachusetts/milford-ma/milford-business-owners-indicted-fraud-charges?fire=
Milford Business Owners Indicted on Fraud Charges – The alleged schemes resulted in over $615,000 in fraud.
I hope you have a great evening!