Insurance industry studies indicate 10 percent or more of property/casualty insurance claims are fraudulent.
Fox Lake, Illinois (PRWEB) January 08, 2014
Independent insurance agency, The Major Agency, believes that education and awareness is the first step to putting an end to fraudulent insurance claims—especially when it comes to workers compensation fraud.
According to the National Insurance Crime Bureau (NCIB), “Insurance industry studies indicate 10 percent or more of property/casualty insurance claims are fraudulent.” Furthermore, workers compensation fraud accounts for approximately 25% or $7.2 billion a year when it comes to insurance fraud. The NBIC even goes as far as characterizing this type of fraud as “one of the fastest growing segments of insurance fraud.” As a business owner, these numbers may seem alarming. In fact, business owners may wonder if these fraud claims will hurt their overall workers comp premium. The answer is yes.
The NCIB claims that “not only does fraud cause higher insurance rates, but it also raises taxes and inflates prices for consumer goods.” With insurance fraud having such a negative impact on society, it is essential to have an understanding on how to reduce the number of fraud cases each year. For business owner, it is important to start with workers compensation.
Often times, employers find out that employees are using workers compensation fraud to file claims and receive workers comp benefits. In order to put an end to this, it is important to know how employees will make a fraud claim. There are a few key scenarios to look out for:
#1: Injuries off the job. If an employee is injured while off the job, he or she may claim that it was an onsite injury. It is important for business owners to get details or ask for witnesses in order to avoid a case of fraud.
#2: Inflated injuries. In this instance, an employee may claim to be in more pain than in reality. As a business owner, it is important to order an employee to see a doctor before filing a claim.
#3: Fake injuries. Though hard to disprove, some employees will claim a fake injury in order to take time off. Popular choices for this: back and neck pains.
#4: Malingering. If an employee continues to stay home, even after being healed, this is considered malingering. To avoid this, a business owner should ask for updates from his or her doctor. Having a Return to Work Program may help to avoid this case.
#5: Old injuries. If an employee was injured in the past, he or she may claim that their injury was “aggravated” or has happened more recently.
Business owners who suspect fraud should never hesitate to get on the phone with their insurance agent to discuss. It is important for all to address this type of situation in the right manner to avoid any further issues. The Major Agency is here for its community and will do all that it can to ensure that its clients do not suffer from a higher workers compensation premium due to fraud. To contact the agency for further information or a free workers compensation quote, call 888-906-7993.
About The Major Agency:
The Major Agency is an independent insurance agency that was founded in 1960. Over time it has grown to serve over 2,300 clients in the greater Chicago area. The main focus of their business is providing the best possible insurance services to their customers. Since every person and business has unique insurance needs, The Major Agency believes that their job is to help residents and companies in Chicago understand the many insurance coverage options so that customers can make the best possible decisions for their needs. This agency values quality, professionalism, and forming long-term relationships with both providers and customers.