How to Recognize Workers Compensation Fraud

These signs indicate a fraudulent workers compensation claim.How to Recognize Workers Compensation Fraud

As a business owner, it’s natural to want to trust your employees. Unfortunately, when it comes to workers compensation claims, the National Insurance Crime Bureau reports that fraud costs the system approximately $30 billion annually. If you run a small business, a fraudulent workers compensation claim can increase your insurance costs significantly. To protect your business’s assets, you need to investigate each workers compensation claim carefully for signs that it is fraudulent. Here are some of the red flags you should watch out for.

1) The story doesn’t add up – If your employee’s account of the story keeps changing or if their account does not fit the evidence gathered at the scene, this is a clear sign of dishonesty.

2) There are no witnesses – While it’s possible that the employee was simply alone at the time of the incident, if the employee normally works around others, you may want to investigate their story a little more closely.

3) The employee has had issues in the past – If the employee has expressed their dissatisfaction with the company or had performance or behavioral issues in the past, they may have submitted a claim as a way of getting back at the company. Make sure you investigate the employee’s account very carefully for any inconsistencies.

4) The employee is uncooperative – Sustaining an injury at work is a scary experience, but if the employee is being particularly unresponsive or difficult, it’s possible that they are hiding something. Refusing to undergo diagnostic tests or not responding to communication efforts should raise a red flag for you.

Watch out for these signs of a fraudulent workers compensation claim.  Do you have additional concerns regarding your workers compensation or other business insurance needs?  If so, contact the experts at ISU-Wissink Insurance.  Our dedicated team is ready to assist you with all your coverage needs today.