Stock photo for illustration purposes only.
Business owners who thought they were protected discovered they’d been operating without workers’ compensation coverage for months. That’s the harsh reality facing clients of a Georgia insurance agent now charged with insurance fraud after allegedly pocketing premiums while issuing worthless certificates.
The Scheme Unravels After License Expires
Lucy Margarita Suarez operated EliteOne Solutions in Dalton, Georgia, for years after establishing relationships with nearly two dozen insurance carriers. But investigators say she continued selling policies and collecting premiums even after her agent license expired in April 2025.
The Georgia Board of Workers’ Compensation discovered that businesses paying for coverage weren’t actually protected. Instead of forwarding premiums to insurers, authorities allege Suarez diverted the money while providing clients with fraudulent certificates of insurance. According to FBI data, insurance fraud costs American businesses over $40 billion annually, with premium diversion schemes representing a growing threat to small and mid-sized companies.
Make Sure You’re Not Overpaying
Advertiser Disclosure
RoadBuddy is a free resource that helps drivers compare auto insurance options.
We may receive compensation from some insurance companies and partners when you click on links or request a quote through our site. This may affect where offers appear, but it does not influence our reviews, guidance, or editorial decisions.
Our content is researched and written independently to give you clear and unbiased information.
By using RoadBuddy, you acknowledge and accept this disclosure. Learn more.
What This Means for Business Owners
Workers’ compensation fraud puts business owners in a precarious position. Companies operating without valid coverage face potential lawsuits, state penalties, and financial ruin if employees are injured on the job. Many states require immediate proof of coverage to maintain business licenses or secure contracts.
The ripple effects extend beyond individual businesses. When employees discover their workplace lacks proper coverage, they may file claims against the business directly rather than through the workers’ comp system. This exposes employers to unlimited liability for medical expenses and lost wages.
Red Flags Business Owners Should Watch
Premium diversion schemes often target small businesses that don’t have dedicated risk management teams to verify coverage. Warning signs include agents requesting cash payments, unusually low premiums compared to competitors, or reluctance to provide direct insurer contact information.
Industry experts recommend business owners verify their coverage directly with the insurance company at least quarterly. Many insurers now provide online portals where policyholders can confirm active coverage status and payment history.
What Drivers Should Do Now
Review your auto insurance policy documents and verify your agent’s license status through your state’s insurance department website. Contact your insurance company directly if you have any doubts about your coverage status. Ask for a certificate of insurance directly from the insurer, not just the agent. Set calendar reminders to verify coverage every few months, especially if you work with independent agents. Consider working with agents who represent multiple well-known carriers with strong financial ratings.
The investigation continues as authorities search for additional victims. Business owners who suspect they’ve been affected should contact their state insurance commissioner immediately.
