Workers’ comp insurance fraud costs six to seven billion dollars each year, according to estimates by the Coalition Against Insurance Fraud (CAIF) and the National Insurance Crime Bureau (NICB). Workers’ comp insurance fraud costs six to seven billion dollars each year, according to estimates by the Coalition Against Insurance Fraud (CAIF) and the National Insurance Crime Bureau (NICB). (Photo: Shutterstock)

Workers’ comp insurance is designed to help cover an employee’s medical costs and lost wages if they are injured at work. It is also meant to help protect employers from incurring personal financial losses as the result of a workplace injury that occurs within their small businesses.

Of course, sometimes, a service like workers’ comp can be used incorrectly. On some occasions, these incorrect uses can even become fraudulent in nature. What happens when an employee, employer, or health care provider accidentally or intentionally commits workers’ compensation fraud? How can small business owners ensure workers’ comp coverage is being used effectively and for its intended purpose?

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