The Fear of Workers Compensation Fraud
As an insurance agent, you hear stories of workers compensation fraud all the time. You know the fear employers feel and how fiercely they protect their insurance policies, or do you? The Coalition Against Insurance Fraud provides some interesting facts.
Just the Facts, Maam
According to the ACIF:
- 1 out of 10 small business owners think an employee will fake an injury/illness to get benefits
- 1 in 4 owners install CCTV systems to monitor their employees
- 1 in 5 business owners don’t know how to identify workers compensation fraud
- 58 percent of business owners fear employees who have a history workers comp claims
Those numbers are huge. Your clients don’t trust their workers, and what length will they go to protect themselves?
The ACIF provided another distressing discussion. In order to avoid having to secure workers compensation insurance or paying a claim, business owners have been known to:
- Lie about the number of employees on their payroll
- Pay employees under the table
- Classify an employee in a high-risk job as working a low-risk job
- Misclassify employees as independent contractors
Your clients don’t have to do this if you find an insurance wholesaler that specializes in workers compensation coverage for small businesses. Don’t let your clients become a statistic in workers compensation fraud. Match them with the perfect policy provider today.