Workers compensation insurance companies offer coverage for your company in the event of employee injury on the job. However, some employees may take advantage of their situation and commit fraud.


An employee may commit fraud by:

  • Exaggerating symptoms to draw out benefits
  • Claiming an unrelated injury occurred while on the job
  • Working at a different job while claiming benefits due to work absence

Sometimes an employee intentionally takes these steps to defraud the company. Other times, a legitimately injured employee may become bitter towards the company for replacing and ignoring him or her, causing the employee to falsely extend their leave out of frustration.


To prevent insurance premiums from rising, there are certain steps employers should take to avert workers comp fraud. Install video monitoring systems to ensure that injuries occur on the job site, not at an unrelated incident. Educate employees about the illegality of fraud and encourage them to report suspicious behavior. Improve workplace safety to make faked injuries less believable. Let employees know that every effort will be taken to get them back to work once they have recovered.

Workers compensation insurance companies play an essential role in business. But the system collapses when it is taken advantage of, so learn the warning signs of and prevention techniques for workers comp fraud.