What is Workers' Compensation Fraud?

Author: The Massey Clark Fisher Team | Thursday, Apr 17, 2014


Tags: community • home insurance • homeowners insurance • insurance • local • safety tips • seasonal • tips

Many growing businesses have workers' compensation policies in place to help employees who may have to take time off work for unforeseen reasons. Whether an employee has been injured at work or is taking time off for surgery, there are many reasons why workers' compensation claims happen. However, your company would do well to understand workers compensation fraud, in order to be on the lookout for potential cases!

What is Workers' Compensation Fraud?

Workers' compensation fraud happens when an employee tries to claim workers' compensation benefits when the injury they’ve sustained is not eligible. Often this is seen when an employee has a pre-existing condition or a previous injury that they did not disclose initially. This makes it easy for them to claim an injury happened at work, and many employers just fall for this without asking questions.

Another way workers' compensation insurance fraud is seen is when an employee exaggerates the extent of his or her injuries or fabricates the injury altogether. This is a felony if an employee is caught doing this, and a business should not take it lightly.

Of course, workers compensation insurance is still a necessity for any business to have, as it will substantially alleviate the costs when and if a worker is injured on the job. Companies that do not offer this type of insurance cannot expect their business to last long if this is not offered to employees. After all, it’s better to be safe than sorry!

Still Don’t Have Workers Compensation?

Our agents are here to help your business with various types of insurance coverage. Chief among these concerns is making sure your company has equipped itself and prepared properly for claims in the future with a comprehensive workers compensation policy. This coverage is a must-have for any business so talk to us today to get covered!