Nearly 3 million workplace accidents happen each year, and appropriately 2% of those are fraudulent. Workers’ comp fraud can be financially devastating to a business and put injured employees at risk. While the warning signs for this fraudulent behavior vary depending on the circumstances, consider the common red flags.
If the employee typically works closely with colleagues and claims to have been injured when no one else was around, this may be a red flag. Additionally, if there are witnesses to the injury who are all close friends or family members of the employee, the claim may be fraudulent.
An Unhappy Employee
Employees who consistently voice their disapproval of company policies or general unhappiness with the company tend to be more motivated to commit workers’ compensation fraud than employees who are happy with the status quo.
It may be a red flag when employees change the facts of their story. Sometimes clarifying details come forward, but when the foundation of the story shifts, workers’ comp fraud may be at play.
Workers’ compensation fraud can cause business owners to pay higher insurance premiums and leave honest claimants under scrutiny. Insurance brokers can guide business owners to the best workers’ compensation policies designed to protect businesses from financial hardship due to dishonest claims.