Skip to content

Fighting Insurance Fraud

Insurance is no different than any other field of human endeavor; there are those who try to cut corners and seek unfair advantage. Everyone—employers, employees, medical providers, and insurance carriers—has an important role to play in identifying those who cheat. Fighting fraud is a big job, but you can take some simple steps to prevent fraud from affecting your workplace and wallet.

Educate your employees about workers’ compensation. he law requires you to inform your employees about their workers’ compensation rights. They should understand the workers’ benefits for legitimate claims and the penalties for fraudulent ones. Don’t be afraid that, by receiving too much information, they’ll abuse the system. Chances are they’ve already been exposed to misleading information, and you can put an end to any misconceptions.

Publicize your tough stance against fraud. Inform employees that all suspicious claims will be investigated and all improper claims will be fought through proper legal channels.

Protect yourself by acting responsibly. Fraud is a serious accusation that, if not handled correctly, could put you in the middle of a lawsuit for libel or slander. Give your self-added protection. Voice your suspicions only to your insurance representative and let them be responsible for validating your suspicions and reporting appropriate cases to authorities.