Nearly every state requires businesses to provide workers' compensation insurance in the event that an employee is injured on the job. As with most mandatory legal requirements, there are always going to be individuals who try to get around this and cheat the system. Both businesses and employees can become involved in the serious issue of workers' compensation fraud.
There are two types of workers' compensation fraud: premium fraud, which is when a business owner attempts to misrepresent its workers' compensation coverage to lower its insurance costs; and claimant fraud, when an employee falsely claims to have suffered a work-related injury to gain workers' comp benefits. If a workers' compensation claim fits several of these scenarios, it may be time to launch an investigation.
Business owners should clearly and continuously convey to all employees a commitment to workplace safety as well as a zero tolerance of workers' compensation fraud.
As your independent insurance agent, we work for YOU and not the insurance companies. Where we can lend our expertise to help you run your business in a more safe, secure, and fraud-free environment, we gladly do so. Call us anytime to review your workers compensation plan and see if it truly protects you and if it protects you at a truly valued price.