Workers compensation fraud costs America's businesses billions of dollars
each year. The Insurance Information Institute estimates that
property/casualty insurance fraud costs insurers about $30 billion a year.
Other than the obvious cost of your workers compensation premium, there
are some additional costs of fraud you may not have considered.
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You will likely pay overtime costs for other employees to
perform the missing employee’s work. Usually production declines and
business delays occur, which may affect customer service and satisfaction.
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The effect on employee morale can also be very costly. If a
co-worker is suspected of submitting a fraudulent workers compensation
claim, other employees may resent the added stress and workload. It may
even lead others to file fraudulent workers compensation claims in the
future if the benefits appear to outweigh the risks.
Federated Insurance recognizes our ethical and legal obligations to pay
legitimate claims in a fair manner. Equally important is our obligation to
protect our policyholders and the public from the increased costs
associated with insurance fraud. We can do this by working closely with
your company to more effectively prevent, detect, and eliminate false
insurance claims, while actively pursuing suspected perpetrators of
insurance fraud.
Contact Federated immediately if you suspect insurance fraud.
