Workers Compensation Insurance Fraud is Real
Workers Compensation Fraud is Real
At our website www.oneminutefromnormal.com we ask visitors the question: What if an unscheduled event suddenly seizes control of your business? Are you ready?
For businesses, workers’ comp insurance fraud can be the most common type of insurance fraud. Like all insurance fraud, it results in increased premiums for all companies. It also undermines employee morale, while depriving companies of trained workers. Perpetrators face steep fines and jail time.
According to The Pennsylvania Insurance Fraud Prevention Authority, workers’ comp insurance can be compromised by either employers or employees if false or misleading information is submitted to insurance providers.
Following are the most common ways an employee can commit insurance fraud:
- Fake an injury at work to get paid time off
- Exaggerate the severity of an injury to get additional time off with benefits
- Falsely claim an injury occurred on the job
- Mislead the insurance company about being unable to return to work at the previous place of employment after taking a new job
- Conceal income from another job, while continuing to collect workers’ comp benefits
If any of these scenarios sound familiar to you, we recommend educating your employees on the implications of fraud allegations. Also, practice an aggressive zero tolerence strategy using every tool available to defend yourself.
An employer can commit insurance fraud in the following ways:
- Fail to carry workers’ compensation insurance
- Understate company payroll to reduce premium payments
- Classify employees as independent contractors
- Wrongly characterize the type of work employees do in order to qualify for and pay lower premiums
We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal, beginning with education. To learn more about recognizing and controlling workers’ comp insurance fraud, please contact your KMRD Partners account representative.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®
To identify and correct coverage and service gaps in your insurance contact us at contactus@kmrdpartners.com before one minute from normal strikes your company.
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