Workers' compensation fraud is something that makes big news -- especially when someone gets caught blatantly faking an injury. However, some of the biggest workers' comp fraudsters out there are not individual employees but employers. 

Workers' compensation insurance is one of the biggest expenses employers face. Trying to avoid that expense is the main reason that employers aim to "game the system" and skirt paying what they're supposed to pay. However, that often leaves hapless employees without adequate coverage when they get injured -- something they may not find out until it's too late. 

How do employers do it? If you're an employee, be on the alert for the following tricks: 

1. Your Employer Misclassifies Employees

One of the most common ways that employers try to skirt the expense of adequate workers' comp coverage is to misclassify their employees as independent contractors. For example, the roofer you hire may tell his workers when to show up, when to leave, what to do, provide their tools, tell them when they can take breaks and more -- clearly controlling their work day and duties like any employee. However, for the purposes of workers' comp, he or she may insist that each employee is actually a self-employed contractor.

Another way that employers misclassify employees to get a better premium is mislabelling their employees as low-risk office workers, secretaries, and even co-owners of the company on the workers' comp roles. That way, they pay a minimal premium -- instead of the higher premium given to high-risk laborers like construction workers. 

Be on the watch for those types of tactics. The odds are good that you'll see the misclassification somewhere on your paperwork. Don't accept the answer that it's "just a typo" or "just for insurance purposes." 

2. Your Employer Borrows A Policy Number

A lot of contractors, construction companies, roofers, plumbers, electricians, and others advertise the all-important "licensed, bonded, and insured" statement to their customers. Many customers won't hire someone that isn't insured for fear that their homeowners' insurance will end up paying for an injured worker otherwise.

However, not many homeowners carefully check the policy number they're shown. Some employers are willing to "borrow" a policy number (which costs much less than actually buying one) from shell companies that don't really exist except on paper. The shell company buys a policy for a minimal number of employees, then makes its money back -- plus some -- by renting out certificates to others with the policy number on it. The people renting the certificates have something to show potential customers with a policy number that's actually valid (if checked) but there's no real coverage for workers.

The best you can do to avoid getting caught up in the game is make sure that you look into your employer's insurance certifications. If you have any doubt -- ask questions and dig deep. It's the only way to avoid ending up injured and victimized in more ways than one. If you are the victim of workers' comp fraud by an employer, consider contacting a workers' compensation attorney for assistance.