Top 10 Questions #6 - Workers Comp Premium Audit - Reserve Reviews For Employers

Workers' Compensation
Premium Refunds Possible

Jun 26, 2008

Top 10 Questions #6

6. One of our employees is out of work with a back injury and drawing Workers Comp payments. We saw him lifting something very heavy over and over again. Should we try to pursue fraud against the employee?

Believe or not, but no - as using your Workers Comp dollars/premiums to try to prosecute fraud is not a good idea. Yes, you should assign a Private Investigator; and yes, you should use the evidence you will gather to reduce the cost of your claim. You should also report the fraud to the State Industrial Commission or Accident Board.

Why do I say this? Almost no employees that commit Workers Comp fraud are prosecuted, but as I said before, the evidence gathered by using a PI can be used to reduce the payouts on a claim.

Bottom Line- do not use your Workers Comp premiums or dollars to prosecute fraud. That is for the authorities to pursue.

Labels: