Worker's Compensation Investigations...

Claimant fraud is the most notoriously reported form of insurance fraud.  In 1994, there were 200,000 claims for work-related injuries in the state of California.  The National Insurance Crime Bureau estimates that worker’s compensation fraud is the fastest growing insurance scam in the nation, costing the industry $5 billion per year.  According to the Insurance Information Institute, 10 cents out of each premium dollar is wasted on fraud.  Nobody is immune.  One insurance company president put the cost of worker’s compensation fraud at $30 billion a year.

Tips for Combating Worker’s Compensation Fraud

1. Verify employee references and background information carefully.
2. Publicize your worker’s compensation policy to all new and current employees, and provide them with updates at least once each year.
3. Spread the word that money to pay fraudulent claims comes out of the employer’s pocket.
4. Educate supervisors on worker’s compensation issues, particularly how injuries decrease productivity and how costs affect the bottom line.

If you suspect worker’s compensation fraud, contact your insurance company immediately.

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