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Five Ways Businesses Can Prevent Workers’ Compensation Claim-Related Fraud

According to the Coalition Against Insurance fraud, claim-related fraud cost businesses billions of dollars every year. Claim-related fraud can be perpetrated by an employee, a medical provider or vendor, or the policyholder. It typically occurs when an employee falsely claims a work-related injury in order to obtain workers compensation benefits.

Here are five proactive steps business owners can take to promote workplace safety and reduce potential claim-related fraud.

Suspicious claims should be reported immediately to the workers compensation insurance carrier’s Claims Department and Special Investigations Unit, or to the appropriate law enforcement authorities for investigation. Workers compensation claim-related fraud can be a costly crime, but by following these steps it can be deterred or mitigated.