Beware Workers Compensation Scams

It is imperative that you have workers compensation coverage intact for your business in the event that an employee is injured within the course of his or her employment. While carrying a workers comp policy is the law, it is also the only way to protect your business from financial ruin if the claim costs more money than you had imagined. Also, there are times when no injury or accident actually happened, but employees may not be as scrupulous as you wish.

Unfortunately, workers comp scams are not an uncommon practice in today’s workforce. Watching out for the signs and acting on them can protect your business. Here are some things that should raise red flags for you:

• Reporting injuries first thing on a Monday morning. If an injury allegedly occurred late on a Friday night and isn’t reported until Monday or it occurred first thing Monday morning, chances are it might not be true.
• There has been a recent change in employment announcement. Layoffs, job termination, strikes, end of the work season, or the end of a big project can be prime time for workers comp fraud.
• Claimant’s providers are suspicious. Look into the history of the attending medical providers or legal consultants to see if they previously handled suspicious claims or claimants.
• There are no witnesses to the accident and the claimant’s description can not be corroborated.
• The employee’s description of the accident does not match with injury reports.
• The employee has a history of suspicious claims.
• The employee refuses treatment, is hard to get in touch with, or is otherwise delaying return to work.

If you have any reason to believe a workers comp claim is fraudulent, contact your workers comp carrier so they can investigate the situation and determine the next course of action for your business.

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