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Workers' Comp Fraud Popular Insurance Scam

July 11, 2001

Faking or exaggerating injuries to collect wage loss benefits from\r\nan employer's workers' compensation policy is among the top four\r\ninsurance fraud schemes.

EHS Today Staff

Faking or exaggerating injuries to collect wage loss benefits from an employer''s workers'' compensation policy is among the top four insurance fraud schemes, according to the National Insurance Crime Bureau (NICB).

NICB estimates that insurance fraud costs Americans about $30 billion each year.

The company found many alleged "injured" employees "are often seen working on a second job or performing activities beyond what their claimed injury would permit.

The other top insurance frauds are homeowners claim fraud, auto repair fraud and faking bodily injuries following an auto accident.

"Some insurance crimes are elaborately planned involving organized fraud rings, including dishonest doctors and lawyers and unscrupulous auto repair shop operators," NICB said. "Others are simple attempts by your neighbors to get a little extra money on a claim. Either way, these people cost you money and in some cases jeopardize your safety. And we''re out to stop them."

by Virginia Sutcliffe

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor: Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.