Numerous Americans suffer from work-related injuries and/or illnesses every year, many of whom may reside in California. While most employers are required to supply workers' compensation insurance for when these situations arise, it is not uncommon for them and their insurance providers to really question whether employee claims actually have merit. While this may seem extreme, there is reason to rule out potential insurance fraud cases.
Insurance fraud is an issue across the country. Unfortunately, California is no exception. The acts of one individual is all it takes to cause insurance providers to question all claims submitted. While this is good, in the sense that it can help keep premiums down for everyone, it is bad in the respect that innocent people may be subjected to criminal accusations.
Insurance fraud comes in all forms. Workers' compensation fraud, in particular, is considered a big issue in California -- one that costs insurance providers millions of dollars every year. These losses are, generally, recovered by increasing premium rates. Because so many people are affected by insurance fraud, district attorney offices across the state were recently given funds to combat this issue. In the San Diego area alone, $4.9 million was granted to help prosecute those accused of workers' compensation fraud.
California residents who have been accused of workers' compensation insurance fraud could face a number of potential penalties if prosecuting attorneys are able to secure convictions. These could include years behind bars and significant fines. Help is available to those placed in such positions. With the assistance of an experienced criminal defense attorney, it will be possible to make informed decisions regarding one's case and pursue the best course of action for the circumstances.
Source: californiahealthline.org, "California DOI Awards $34.9M To Help Fight Workers' Comp Fraud", Aug. 11, 2015