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Preventing New Jersey Workers’ Compensation Fraud – Part 1

Preventing New Jersey Workers’ Compensation Fraud – Part 1Preventing New Jersey Workers’ Compensation Fraud – Part 1

New Jersey Workers’ Compensation Fraud is, unfortunately, one of the most common types of employee dishonesty there is. It is illegal, but that does not always stop employees, and even business owners, from attempting to make false claims anyway. This type of fraud adversely affects the bottom lines of not only your clients, but you and your carrier as well. New Jersey Workers’ Compensation Fraud also leads to higher insurance premiums for honest businesses, and causes a loss in commission for insurance agents.

Workers’ comp fraud can’t always be avoided; however there are steps your clients can take to potentially reduce their risk of being faced with this type of employee dishonesty. In the first part of this 2 part post, we’ll look at the warning signs of New Jersey Workers’ Compensation Fraud that employers should look out for.

Reporting an injury on a Monday morning. It’s typically a red flag if an employee claims they injured themselves first thing on Monday morning, or they injured themselves Friday but waited until Monday to report it.

Late Reporting. Typically if an employee injures themselves, they will report it right away. Waiting a week or longer is not only a mistake on their part, but a red flag that says they may not have actually incurred the injury on the job.

Odd timing. Did the reported accident happen right before or after a strike, termination, layoff, or near the end of seasonal work?

No witnesses. If the employee’s account of what happened doesn’t make sense, and there were no witnesses, this is a major red flag.

Refused treatment. The claimant refuses a diagnostic procedure to determine the actual cause of the injury.

These are just a few ways that your clients may suffer because of Workers’ Compensation Fraud. It’s imperative to remember that insurance agents and brokers may be victimized as well. So what should you look out for? Check to make sure that reported injuries are consisted with purported job titles or duties, look to see if the business has a habit of avoiding audits, and ensure that the business’s previous carrier did not drop coverage for the business based on fraud.

At the Associated Specialty Insurance Agency, Inc. (ASIA), we understand that New Jersey Workers’ Compensation Insurance is a front-and-center issue for employers, the insurance distribution system, Workers’ Compensation boards, and state legislatures. Insurance agents and brokers with access to competitive markets will not only capitalize on the ability to secure coverage for their clients, but they can also now leverage an improving economy set to spur the Workers’ Compensation industry with an increase in jobs and payroll exposure. Please contact us at (866) 679-7457 today to learn more about our Workers’ Compensation solutions for a wide variety of Targeted Industries.

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