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Workers' Compensation Premium Fraud Claims Many Victims

When most people think of workers' compensation fraud, they envision an employee filing a claim for a leg injury only to be caught running a marathon a few weeks later. But it is a different type of

By Phil Galewitz | Updated on March 31, 2009

When most people think of workers’ compensation fraud, they envision an employee filing a claim for a leg injury only to be caught running a marathon a few weeks later. But it is a different type of scam — premium fraud — that can have the highest total societal cost.

Workers’ compensation premium fraud occurs when an employer falsifies an employee’s classification, understates the size of payroll, or attempts to evade coverage requirements.

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