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Businesses should be aware of workers' compensation fraud, warns Amity Insurance

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QUINCY, MA ISSUED NOVEMBER 14, 2012…While the number of fraudulent claims related to workers' compensation are historically small, some scam artists slip through the cracks, costing billions of dollars every year, according to Amity Insurance Agency, Inc., the region's leading full service agency.

There are several ways dishonest employees can make bogus claims and exaggerated injury is high on the list. If a worker is using this method, he or she may have a very minor injury but will embellish the severity enough to take time off from work. In this scenario, the employee will often claim that their injury requires a lengthy recovery period in order to collect more money.

Off-site injuries also account for fraudulent claims. There are those unscrupulous individuals who may sustain an injury while away from work, but will wait until they return to work, fake an accident that would result in the same injury and then file a claim.

In some cases, workers may fabricate the details of a nonexistent injury. The most popular scams involve soft-tissue damage, back and neck problems. Since these ailments can be difficult to disprove, employers may have to pick up the tab for a worker's dishonesty.

Some workers may use an old injury or malingering to gain money. With old injuries, workers pretend the damage is new in order to get out of work or get paid for treating injuries they may not be able to afford to treat otherwise. Malingering is abusing the system by staying out of work longer than necessary.

To learn more about workers' compensation fraud and how to prevent it, discuss concerns with your insurance agent.

About Amity Insurance

Amity Insurance Agency, Inc. is a full-service agency dedicated to meeting your business, professional and personal insurance needs.

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