The Top 10 Warning Signs of Workers’ Compensation Fraud

Indicators to Watch for on Workers' Compensation Insurance Claims

10 Red Flags on Workers’ Compensation Claims

Experience shows that when two or more of these factors are present in a workers’ compensation claim, there is a chance the claim may be fraudulent. Remember, though, that these are simply indicators. Many perfectly legitimate claims are filed on Mondays – and some accidents have no witnesses.

  • Monday Morning Reports: The alleged injury occurs first thing on Monday morning, or the injury occurs late on Friday afternoon but is not reported until Monday.
  • Suspicious Providers: An employee’s medical providers or legal consultants have a history of handling suspicious claims, or the same doctors and lawyers are used by groups of claimants.
  • Conflicting Descriptions: The employee’s description of the accident conflicts with the medical history or first report of injury.
  • Treatment is Refused: The claimant refuses a diagnostic procedure to confirm the nature or extent of an injury.
  • Claimant is Hard to Reach: The allegedly disabled claimant is hard to reach at home.
  • Employment Change: The reported accident occurred immediately before or after a strike, job termination, layoff, end of a big project or at the conclusion of seasonal work.
  • No Witnesses: There are no witnesses to the accident and the employee’s own description does not logically support the cause of injury.
  • History of Claims: The claimant has a history of a number of suspicious or litigated claims.
  • Late Reporting: The employee delays reporting the claim without a reasonable explanation.
  • Changes: The claimant has a history of frequently changing physicians, changing addresses and numerous past employment changes.

Want to take this information with you? We offer an in-depth overview of the fraud warning signs and support programs provided by EMPLOYERS, as well as a quick-read Top 10 flyer that’s handy for both EMPLOYERS agents and policyholders.