Top Types of Workers’ Compensation Fraud

Most businesses require workers’ compensation coverage. Unfortunately, as with all insurance coverages, employees and others can attempt to scam the system or commit workers comp fraud. Here are the three most common types of fraud.

Injury Exaggeration

Injury exaggeration is one of the most common forms of workers’ compensation fraud. For example, a worker may claim that he or she suffered a severe sprain at work. Then, you catch the employee playing sports or jogging on social media. Employees guilty of fraud may face criminal charges, fines and other penalties.

Double Dipping

Double dipping occurs when an employee collects disability benefits while continuing to work for the company. When under temporary disability, a doctor generally orders the employee remain home. Not only is the worker at risk of further injury, but he or she defrauds the system by collecting a paycheck alongside disability benefits.

Fraudulent Insurance Certificate

Businesses prove that they have insurance through insurance certificates. If a business uses subcontractors, it is up to the business to request a copy of the subcontractors’ certificate of insurance. Without insurance, a subcontractor may claim to be a full-time employee.

Every business requires workers’ compensation insurance. If you have employees, injuries are bound to happen. Not only do you need a solid workers’ compensation policy, but you need to be aware of what may be considered fraudulent.

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