The Cost of Fraud

Workers' compensation fraud has a significant impact on the cost of workers' compensation.
Insurance fraud imposes an enormous burden on our national economy. It has been estimated that the cost of insurance fraud against workers' compensation insurance carriers alone is over $5 billion each year. Workers' compensation fraud carries a higher price tag than fraud in any other category of property/casualty insurance.

Not A Victimless Crime

Every dollar paid out because of insurance fraud must be made up by a dollar increase in premiums. Companies pass on the increases in premiums to their customers through higher prices for the goods and services they sell.
Moreover, the overall effect of fraud can be disastrous. Not only does the expense of fraud raise insurance premiums, it discourages business from expansion, can reduce productivity and threaten a company's survival. Other employees must pick up the slack of malingering co-workers, jobs go unfilled, and pay raises or profit sharing gains suffer as revenue is lost.
There are also hidden costs to fraud. The cost of workers' compensation coverage increases with every worker a business hires. The hidden cost of insurance fraud not only discourages businesses from expanding their operations, it also encourages schemes to hire workers "off the books" to keep costs down, minimizing the benefits and protections afforded these workers and allowing them to pocket salaries without paying their fair share of taxes.
One way or another, insurance fraud increases the cost of living while decreasing the quality of life for everyone. Help us keep the cost of living and the cost of your insurance down.
You can help fight fraud by reporting any type of suspected workers' compensation or disability insurance fraud against NYSIF.