Premium Scams and Their Effect on the Workers’ Compensation System

Many of us have heard or read stories about people who filed fraudulent Workers’ Compensation claims in North Carolina when they weren’t as seriously injured as they’d claimed, or when their injuries were unrelated to their jobs. However, in its “Scam Alerts” coverage, the Coalition Against Insurance Fraud also lists several types of Workers’ Compensation fraud perpetrated by employers, rather than employees.

While most employers find it in their best interest to provide sufficient workers’ compensation coverage and take care of their employees, some resort to shady schemes in which they classify workers as having far safer jobs than they really do; classify employees as independent contractors (who would not affect a company’s workers’ compensation premium); or form several smaller companies, instead of a single larger one, so that none of companies would have the minimum number of employees that would trigger the requirement to provide workers’ compensation. Occasionally, employers also try to control or manipulate the medical providers to whom they direct their employees when they are injured on the job.

According to the Coalition Against Insurance Fraud, such premium scams are much larger in scope than most fake-injury ones; they are also more complex and more hidden. They can last for years, impacting numerous workers’ lives and depriving truly injured workers of hundreds of thousands of dollars.

If you have sought to file a workers’ compensation claim in North Carolina and your employer has denied that you are covered by workers’ compensation under North Carolina law, you should consider consulting an experienced North Carolina workers’ compensation attorney.

The attorneys at Lee & Smith serve clients in workers’ compensation cases in both South and North Carolina. For a free consultation regarding your workers’ compensation case, please contact us by phone or email.

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