🏗️ The Hidden Cost of Fraudulent WSIB & Fake Injury Claims to Industry

Every year, Ontario businesses pour millions into workplace safety, employee training, and WSIB premiums—investments meant to protect both workers and employers. But there’s a growing threat that undermines these efforts: fraudulent WSIB and fake injury claims.

While most claims are legitimate, a small percentage are not—and that small percentage carries a massive financial burden for employers across multiple industries.

The True Cost of Fraud

1. Increased WSIB Premiums

Employers with frequent or severe claims are penalized with higher WSIB premiums. When a fake or exaggerated claim goes undetected, it’s the employer who absorbs the financial fallout—sometimes to the tune of tens or hundreds of thousands of dollars in added costs annually.

2. Productivity Losses

Fake claims often result in unnecessary time off, leaving employers to scramble to fill shifts, pay overtime, or delay projects. This is especially costly in construction, manufacturing, and other labour-intensive industries where downtime equals lost revenue.

3. Legal and Administrative Headaches

Dealing with a fraudulent claim means navigating investigations, documentation, and sometimes costly appeals. These processes divert valuable time and resources from core operations.

4. Damage to Workplace Morale

When employees witness others “gaming the system,” it can create resentment and mistrust, undermining morale and potentially encouraging further abuse.

Why Employers Must Take Action

WSIB fraud isn't just a legal issue—it’s a strategic risk. Left unchecked, it can erode profit margins, damage reputations, and create a cycle of vulnerability that impacts the long-term stability of a business.