Fifteen Warning Signs of Workers’ Comp Fraud

| posted in Blog, Newsletter

  Workers’ compensation fraud costs the insurance industry roughly $5 billion each year, according to estimates by the National Insurance Crime Bureau. And depending on whom you ask, fraud accounts for as much as 10% of the costs of all workers’ comp claims. This type of fraud is typically associated with malingering employees who fake injuries in order to collect compensation and some paid vacation time. In tougher economic times, particularly as lay-offs mount, some experts think there is an increased exposure for employees to claim a work-related injury for a variety of manufactured reasons, such as for an injury…
Read More

Many Small Businesses Can’t ID Workers’ Comp Fraud

| posted in Blog

Fraud eats away at workers’ comp costs for all businesses, but it hits small businesses the hardest as they may not have the resources to identify bogus claims. According to a new study by workers’ comp insurer Employers Holdings Inc., about 20% of small-business owners are not sufficiently prepared to identify workers’ compensation fraud. It’s estimated that at least 10% of claims are fraudulent, so identifying those illicit claims would keep your workers’ comp claims in check and reduce your workers’ comp premiums. Claims fraud happens when an employee tries to gain workers’ comp benefits by falsely stating that an…
Read More