Workers' Compensation Fraud: How to Protect Your Business

ARTICLE | October 08, 2024

Authored by Vasquez + Company

Workers' compensation insurance is essential for supporting injured employees, but it can also be vulnerable to fraud. The article "What You Can Do About Workers' Comp Fraud" discusses the types of fraudulent schemes workers and employers may use, and how businesses can reduce their risk of falling victim to these costly deceptions.

Key Points:

• Employee Fraud: Workers might exaggerate injuries, fake accidents, or claim non-work-related injuries as work-related.
• Employer Fraud: Some companies misclassify employees, underreport their workforce, or skip insurance obligations.
• Prevention: Implement clear policies, thorough hiring practices, and vigilant monitoring to prevent fraudulent claims.

To safeguard your company from fraudulent claims, it's critical to understand the warning signs and develop strong preventative measures. For more insights, read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.