{"id":134203,"date":"2025-03-15T01:55:54","date_gmt":"2025-03-15T01:55:54","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/protecting-your-business-from-costly-risks-northbridge-insurance\/"},"modified":"2025-03-15T01:55:54","modified_gmt":"2025-03-15T01:55:54","slug":"protecting-your-business-from-costly-risks-northbridge-insurance","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=134203","title":{"rendered":"Protecting your business from costly risks \u2013 Northbridge Insurance"},"content":{"rendered":"


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A false pretense claim arises when someone deceives you into voluntarily transferring ownership of property through a trick, scheme, or false pretense. It can also occur when property is acquired from a seller who did not have the legal title or the right to transfer title.<\/p>\n

This can lead to significant financial losses, particularly in industries dealing with vehicle and equipment sales. You can mitigate risks by conducting thorough due diligence and securing the right insurance coverage.\u00a0<\/p>\n

How do false pretense claims occur?<\/h2>\n

False pretense claims often stems from inadequate background checks, particularly failing to perform a lien check. A lien check verifies whether a vehicle or piece of equipment has outstanding loans or financial interests registered against it. This search is typically done using a Vehicle Identification Number (VIN) or serial number within government databases.<\/p>\n

To protect yourself, every vehicle or piece of equipment acquired on a retail or wholesale basis should undergo a lien check, including those purchased at wholesale auctions or received as trade-ins.<\/p>\n

How to protect your business?<\/h2>\n

You can reduce risks by incorporating these best practices into your business operations:<\/p>\n

1) Get false pretense coverage<\/h3>\n

Adding False Pretense Coverage to your insurance policy provides an extra layer of protection against losses due to fraudulent transactions.<\/p>\n

2) Perform thorough lien checks<\/h3>\n

Ensure that every purchase or trade-in undergoes a lien check. Reliable service providers, such as LienQuest and CarProof, offer lien search services. You can also check with your provincial government\u2019s Personal Property Registry to confirm if there are any financial claims on the property.\u00a0<\/p>\n

3) Establish a written policy for lien checks<\/h3>\n

Having a clear policy and procedure for conducting lien checks ensures consistency and reduces human error. Make it a standard business practice to verify ownership before completing any transaction.<\/p>\n

4) Double-check information for accuracy<\/h3>\n

Errors in VIN entry or other identification details can result in missed liens or inaccurate results. Always double-check the information before proceeding with a purchase.<\/p>\n

5) Verify credit card transactions properly<\/h3>\n

When accepting payments, it\u2019s essential to ensure all credit card transactions are properly verified. Best practices include:<\/p>\n