Comp Scams: Beware Of These ‘Red Flags’

Workers Compensation fraud is a widespread and serious problem that’s not only illegal, but leads to higher insurance premiums for all businesses – including yours.

According to industry experts, Comp-related scams often involve one or more of these “red flags.” Although no one sign should necessarily be cause for alarm by itself, two or more should raise suspicions and could trigger an investigation of the claim:

1. Monday morning report of injury. The alleged injury occurs first thing on Monday, or late Friday afternoon, but is not reported until Monday.
2. Change in employment status. The reported accident occurs immediately before or after a strike, job termination, layoff, end of a major project, or the conclusion of seasonal work.
3. Suspicious providers. The claimant’s medical provider or legal consultant has a history of handling dubious claims.
4. Lack of witnesses. No one else saw the accident and the employee’s description does not support the cause of the injury.
5. Conflicting descriptions. The employee’s account of the accident doesn’t match with the medical history or injury report.
6. History of claims. The employee has filed a number of questionable or litigated claims.
7. Refusal of treatment. The claimant declines a diagnostic procedure to confirm the nature or extent of the injury.
8. Late reporting. The employee delays reporting the incident without a reasonable explanation.
9. Elusiveness. The allegedly disabled employee is hard to reach.
10. Instability. The claimant changes physicians, addresses, or jobs frequently

If one of your workers files a claim that has some of these warning signs, be sure to let us know. We’ll work with you and your Workers Comp carrier to check it out.