Battling Insurance Fraud in Your Business

Insurance fraud continues to rise in the United States. According to the Coalition Against Insurance Fraud website, Harvard University statistics state that “workers compensation insurers in Massachusetts alone lose $100 million a year in unpaid premiums to businesses that illegally pay workers cash under the table or falsely label employees as independent contractors.” Besides this, workers compensation scams are also present.

As a business owner, it is important to understand the measures that must be taken in order to avoid workers comp and insurance fraud. If not, you may find your business paying a hefty premium as the number of claims continues to increase. Here are a few tips:

• Implement a “zero tolerance” policy for fraud. Those who are found doing so should be fired immediately.

• Before hiring an individual, check their background and history of claims. If the individual has a high history of suspicious claims, you should consider that a warning sign.

• Always report accidents as soon as possible.

• If you are suspicious of a claim, do not hesitate to contact our agency for input and investigation.

• Consider rewarding employees who report suspicious claims.

• Understand warning signs: injuries with no witnesses, injuries that are hard to disprove, etc.

For more information on workers compensation and avoiding fraud, you can contact our experts at Wolpert Insurance. We would be more than happy to answer any questions you may have or even help you get to the bottom of a potentially bogus claim! The last thing we want to do is raise your premium because your employees are taking advantage of the workers compensation you offer.