Ask any business owner and he or she will tell you that insurance is not just about commercial general, professional and employee liability or property coverage. In general, it is a legal requirement for a company to purchase workers’ compensation coverage so that employees can claim benefits in the event they suffer a work-related injury.
So it’s a fact: Employee insurance is an important factor in any company’s insurance portfolio.
The problem arises when an employee files a fraudulent claim. And unfortunately, it happens quite often. But contrary to popular belief, employee fraud affects not only companies and bosses, and the employees who live a completely honest life, but also the cheater. File a claim for fake workers and you risk losing your job, spending time behind bars and paying expensive fines. Trust those in the industry: Crime – when it comes to employees – certainly doesn’t pay!
Below are some examples of employees who thought they could make some money by fooling the system. In the long run, the hoax turned against them.
Fake Workers Comp Claim – True Scenarios
1. Marc worked as a gardener. One day he slipped and fell while working. Marc complained about the associated pain that prevented him from working and filed a claim for damages. The process went quite smoothly and it didn’t take long for Marc to receive his disability benefits. Unbeknownst to Marc, the insurance company was after his tracks. After viewing surveillance video showing Marc actively gardening for two other properties, Marc was held accountable. Not only would the disability checks be shortened, but he was also sentenced to four months in prison and ordered to pay more than $39,000 in fines.
2. Jack complained about injuries he received at work. He said the resulting back pain made it impossible to continue his job. Jack told the attending physician that he had not experienced any pain prior to his work accident. It didn’t take long for insurance to provide proof that Jack was lying about his disability. The surveillance camera caught him working as a landscaper in the family business after the allegation he made resulting in a 3-year prison sentence and a $14,500 fine.
3. Sarah filed an employee claim after sustaining injuries to her back and leg while walking up an incline at the company’s outdoor facilities. Sarah did not consider the assets of the insurance company’s investigative department when filing the report. The department’s thorough work revealed the true nature of the injuries: the injuries were sustained before the date stated on the claim, as well as the discussions colleagues had with her about them. Sarah received 120 days in jail, plus 5 years probation, plus a $28,000 fine!
Why Employee Fraud Doesn’t Pay
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