Allegations of premium fraud can result in both civil action by a workers’ compensation insurance carrier and criminal prosecution by the State of Florida. Both the insurance industry and the State of Florida have become increasingly aggressive in pursuing allegations of premium fraud.

Allegations of premium fraud can lead to an employer being forced to pay an insurance carrier a penalty of ten (10) times the amount of the difference between the premium that was paid and the amount that the employer should have paid, as well as payment of reasonable attorney’s fees. Furthermore, allegations of premium fraud can lead to termination of workers’ compensation coverage and the employer having to indemnify the carrier for payments made by the carrier to injured workers who are not properly documented by the employer for premium purposes.

The attorneys at Druckman, Fee and Chait, P.A. are available for immediate consultation for issues arising from allegations of premium fraud. They are also available for, and recommend, a proactive self-audit for compliance to avoid any potential concerns.