From the category archives: Brooks-Waterburn Corp Insurance Protection Blog

Workers Compensation

2/9/2015 8:00 AM

What You Don't Want to Hear About Workers Compensation Fraud

When employees are hurt at work, traditionally, workers' compensation insurance will protect them. WC pays for lost wages, medical bills and any other related expenses the worker can incur while recovering. The vast majority of employees are honest about getting hurt at work, but there are scams out there. One of the checks and balances in the system is requiring a doctor assessment. If an employee were not really hurt, a doctor may be able to identify a false claim. There are, however, unscrupulous people that slip through the cracks. Even though percentage wise the number of fraud claims is relatively small, the damage they cause is significant enough that it costs policy holders and insurance companies billions of dollars every year. In addition to this, some employers try to lower premiums by paying employees off the books or misclassify them. Both offenses are considered workers' comp fraud.

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