Is Your Workers’ Compensation Plan a Pork Barrel for Would-be Scammers?

Tri-State Business Owners – Looking for a New Workers’ Compensation Policy?  We Offer Great Options for New York, New Jersey and Connecticut Employers!  Looking for Lower Rates?  Being Canceled Due To Losses?  In The Middle of an Audit Dispute?   Whatever Your Issue, We Can Help.  Call Gary Wallach at 914-806-5853 or Email Today!


Scamming “the man” can be a favorite pastime among some employees, and one of the best places to run a con is through your workers’ compensation plan. If you aren’t vigilant, a good scam artist can perpetuate the fraud for a long time.

The most common garden-variety type of workers’ comp fraud is the phony workplace injury discovered later when the employee is accidentally caught doing heavy lifting or seen working for another employer while collecting benefits. Fraudulent claims can also occur when an employee complains of unseen ailments or extends the length of a legitimate claim because he doesn’t want to return to work.

Regardless of its form, workers’ comp fraud has a profound financial impact on the entire company. It’s not just about lost productivity that other employees have to compensate for, but also about the potential decrease in annual raises due to higher workers’ comp premiums. This financial burden underscores the importance of vigilance against fraud.

How can you evaluate the potential for workers’ comp fraud at your company? These are some signals that will alert you to a possible scam in the making:

        If an employee has an accident shortly after arriving on Monday morning, this can be a sign of a scheme because the injury may have resulted from weekend activities.

        If an employee claims they fell and there are no witnesses, then hire’s a lawyer who files a claim directly with the Workers Compensation Board, this is a definite red light for fraud.

       If an employee files a claim months after their supposed accident, hire’s a lawyer who files claim directly with Workers Compensation Board, this is a definite red light for fraud.

        If an injured worker refuses treatment from a doctor or physical therapist, it could be cause for concern. Their reluctance to receive treatment could be an attempt to keep a phony injury from being discovered.

        If a disgruntled employee or one who knows they are about to be laid off files a workers’ comp claim, it may be a ruse to get even with the employer.

As an employer, you hold a pivotal role in the prevention of workers’ comp fraud. It’s not just about being vigilant for potential fraudulent claims, but about taking proactive measures to deter them from occurring in the first place. By implementing the recommended strategies, you can significantly mitigate the risk of fraud in your company, thereby safeguarding its financial health and reputation.

        Verify references and background information carefully.

        Publicize your workers’ comp policy to all new and current employees, and update them at least once yearly.

        Spread that money paid for fraudulent claims comes from the employer’s pocket and can directly impact employee salary increases.

        It’s crucial to educate supervisors on workers’ comp issues, equipping them with the knowledge of how injuries can impact productivity and how costs can affect the company’s bottom line. This understanding will empower them to identify potential fraud and take appropriate action, contributing to a more secure and productive work environment.

        Display fraud awareness posters and the National Insurance Crime Bureau’s fraud hotline number.

        Work with your insurer to implement a safety-management program that can eliminate possible safety problems.

        Be aware of workers’ comp fraud indicators when a claim is made.

        If you suspect a fraudulent claim and have evidence or witnesses to back up your suspicion, contact your insurer’s special investigations unit immediately.

        Pay attention to employee complaints and concerns about their working conditions. The strongest predictor of fraud is a chronically disgruntled work force.

BGES Group, located in Larchmont, N.Y. are New York Construction Insurance Specialists that represent 50+ companies and all the BEST general & umbrella liability programs!  We offer every coverage you need including property, builders risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability and group health.  We are extremely responsive, responsible, trustworthy, fast, minimize your insurance headaches, we don’t charge ridiculous policy or service fees and when you call, text or email, whatever time of day, even weekends, we are there to help YOU! 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, payrolls misclassified, whatever your issue, we can help!  We have special programs for: Auto Service, Contractors (especially New York), Limousine Services, Logistic Companies, Manufacturers, Recyclers, Truckers, we can help ANY tri-state business owner.  We are considered “Preferred Agents” for this one program that if we can get you into their pricing is excellent, offers long-term coverage stability and can cover multi-state operations. Program takes the hassle out of doing annual audits too.

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538



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