Workers’ compensation insurance premium fraud has long been a serious problem in Florida and across the country. When business policyholders falsify company data to reduce their premium, it has negative financial and legal ramifications for everyone, including independent agents. However, equipped with the right information, agents can play a key role in identifying and preventing premium fraud.
Continuously faced with financial pressures no matter what the economic climate, some policyholders are unfortunately tempted to manipulate data in order to lower their workers’ compensation insurance premiums. Not only is this fraud illegal, it adversely affects producers’ and carriers’ bottom lines, leads to higher costs for honest businesses, and often places additional legal burdens on agents.
Agents are the key conduit between policyholders and insurance carriers, providing a critical service and expert advice to policyholders with diverse needs. In order to protect the interests of policyholders and their own businesses, agents must remain aware of the different types of premium fraud and their warning signs, and know what to do if they suspect premium fraud.
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