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How an Employer May Commit Workers’ Compensation Fraud


Most companies are required by law to purchase workers’ compensation insurance. This gives many workers the impression that their employer will have complete coverage in place, and will be able to provide benefits in the event that they are injured on the job. However, this is not accurate — some employers even go as far as committing fraud to avoid providing workers’ compensation insurance.

Not Providing Sufficient Insurance Coverage

Workers’ compensation insurance is mandatory for many employers, and state laws often includes provisions that specify the type of injuries that are covered. A business may fail to purchase an insurance policy, or purchase a policy with limited coverage, which is a violation of the law.

An employer may also commit financial fraud to offset the cost of their insurance premiums. Paying for their insurance coverage should be included in the costs of operating a business, and the funds to pay for that coverage should not be taken from employees. An employer who takes money from their staff’s paychecks to cover their workers’ compensation insurance policy is committing a violation.

Falsifying Claim Information

Employers who do have workers’ compensation insurance may try to falsify records when a claim is filed, or when purchasing a policy as a way to save money. Supplying misleading information in regards to official documents is against the law.

Committing fraud, or doing anything in an attempt to limit workers’ compensation coverage, is a legal violation. Falsifying records or failing to provide sufficient insurance to workers is not only illegal, but leaves injury victims harmed and unable to pay for their expenses.

If you were injured at work, contact Alvandi Law Group, P.C. today. We can guide you through the workers’ compensation claims process, and will defend your rights if your employer is denying your benefits.

Send us a message or call (800) 980-6905 to speak with our lawyers.


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