One in 10 small business owners fear employees will fake an injury. One in five owners do not know how to identify WC scams. Know the warning signs to prevent these concerns and protect your business.
Top 10 Warning Signs of Workers’ Compensation Fraud
- Disgruntled employee
An employee who is likely to commit fraud may do so after being denied a vacation request or being reprimanded - Hard-to-reach employee
Trouble contacting an employee on medical leave may be a sign the employee is working another job while collecting benefits. - New employee
Statistically, the newer the employee, the more likely the claim is fraudulent. - No witnesses
A flag should go up if no one can corroborate the story. - Different stories
Beware if the story varies from you, medical professionals, peers or witnesses. - Accident day
Accidents on Monday mornings or Fridays afternoons should raise concern. - History of Claims
Be aware if the employee has a history of filing claims that are suspicious. - Late Reporting
The accident was not reported right away and there was no explanation why it was reported late can be a sign of fraud. - Changes in Employment
Find out if the employee has a history of changing jobs, physicians and addresses. - Refuses Treatment
Employee refuses to see a physician to examine the extent of the injury.
Be alert for these warning signs and know when to ask more questions. Talk to your local insurance agent to learn more about WC insurance to make sure you are properly protected and have to right procedures in place to handle a claim or a fraud situation.