Verticals - Workers' Comp

Workers' Compensation Integrity

Premium fraud, claim fraud, and provider fraud on one CREB.

Workers' compensation is the intersection of three JIL verticals already in build - healthcare (provider fraud and medical billing integrity), P&C (claim adjudication and SIU), and H1B labor (employer wage and classification compliance). Approximately 90% of architecture is reuse from these three sources.

JIL is not a claims management system, not a TPA, not a medical bill review service, not a recovery vendor. It is a payment-integrity layer covering both the premium side (employer underpayment of premiums through misclassification) and the claim side (claimant, provider, and attorney fraud). Premium fraud is a category most fraud-detection products do not address.

$54B
annual US WC premium volume
~$9B
annual WC fraud (NICB)
15
net-new WC-specific checks
Schedule a Call How the pipeline works
Architecture - Visual

Workers' Compensation Integrity at a glance.

Where the integrity layer sits, what it produces, and how the sealed CREB flows back to the buyer's existing systems.

JIL SOVEREIGN TECHNOLOGIES VERTICAL BRIEF · 05 OF 08 WORKERS' COMP INTEGRITY Premium fraud, claimant fraud, provider fraud, attorney fraud. Federal FECA, EEOICPA, BLBA, LHWCA program compliance. ANNUAL US WC PREMIUM $54B NCCI / NAIC, all 50 states ESTIMATED ANNUAL FRAUD $9B 25-40% premium fraud, underserved ARCHITECTURAL REUSE ~90% From healthcare + P&C + H1B FRAUD PATTERNS NCCI class code misclassification Payroll under-reporting (premium) Chiropractic / PT mills Opioid prescriber abuse Attorney capper / runner schemes IME selection manipulation Self-insured claim suppression JIL APPROACH Premium audit reconciliation Provider fraud reuse from healthcare Functional capacity verification Federal program (FECA / LHWCA) CREB for state fraud bureaus, OWCP KEY BUYERS State funds Texas Mutual, NYSIF, SCIF, Pinnacol Major TPAs Sedgwick, Gallagher Bassett, Crawford DOL OWCP (federal programs) FECA, EEOICPA, BLBA, LHWCA State fraud bureaus DOI fraud units, all 50 states DETECTION AND PROOF. NOT RECOVERY. Premium fraud is the underserved category. Provider fraud reuses healthcare engine. jilsovereign.com RAN · CourtChain · PoCS · Sealed Escrow
Figure - Workers' Comp architecture, integration surface, and CREB output
Why this vertical

Where this product earns its place.

The strategic case for Workers' Comp as a JIL line of business - what makes the wedge defensible, what makes it economically meaningful, and how it compounds with the rest of the platform.

Highest reuse

~90% architecture transfers

Healthcare provider-fraud detection (chiropractic mills, opioid prescribers, IME shopping) transfers nearly intact. P&C claim adjudication and SIU evidence framework transfers nearly intact. H1B classification logic informs premium fraud.

State funds

Buyer base parallels Medicaid agencies

Texas Mutual, California SCIF, NYSIF, Pinnacol, Ohio BWC have procurement structures comparable to state Medicaid agencies. The 50-state expansion playbook from healthcare maps directly.

DOL

Federal compression via OWCP

DOL Office of Workers' Compensation Programs administers four federal WC programs (FECA, EEOICPA, BLBA, LHWCA). Federal partner channel (Accenture / Leidos / Peraton) compresses procurement timeline from 18-24 months to 60-120 days.

Premium fraud

Underserved category leadership

Most WC fraud detection focuses on the claim side. Premium fraud (employer misclassifying workers, underreporting payroll, misrepresenting business operations) is comparable in dollar magnitude (25%-40% of total) but underserved by tooling. JIL leads the category.

What we build

Net-new checks, sealed evidence.

A representative slice of the Workers' Comp-specific check pack. Each one runs in the same five-stage pipeline as the rest of the platform - intake, profile load, parallel checks, verdict, sealed CREB - and ships with a 14-of-20 BFT signature, a CourtChain L1 anchor, and a reproducibility manifest pinning the exact check-logic version.

Check

NCCI Class Code Misclassification

Cross-references declared NCCI class code against actual operations - job descriptions, payroll, OSHA logs, NAICS code. Identifies higher-rated classes. NCCI Scopes Manual lookup.

Check

Payroll Reconciliation

Reconciles premium-audit-declared payroll against W-2, IRS 941, and state UI filings. Flags underreporting. Accounts for legitimate exclusions (overtime premium portion, certain bonuses).

Check

Independent Contractor Misclassification

Applies state-specific worker-classification test (ABC test in CA/MA/NJ, common-law test elsewhere). Flags 1099 relationships indicative of employee status.

Check

Experience Modification Manipulation

Detects entity-name-change patterns indicative of experience-mod evasion. Detects policy churn timed to avoid loss reporting. Cross-references owner and officer continuity.

Check

Functional Capacity vs Disability

Cross-references claimed disability against publicly observable activity (DMV, real estate transactions, social media) inconsistent with that disability level. Asset-intelligence integration.

Check

IME Selection Pattern

Detects IME providers with statistically anomalous opinion patterns (95% disability-supporting when claimant-referred, 95% disability-denying when carrier-referred).

Check

Capper and Runner Detection

Detects illegal client solicitation through third parties. Cross-references state bar disciplinary records. CA Insurance Code 1871.7 and equivalents.

Check

OSHA-WC Reconciliation

Reconciles employer OSHA 300/300A logs against WC claim filings. Flags OSHA-recordable injuries not appearing in WC system, indicative of claim suppression.

Buyer profile

Who runs this in production.

The buyer pattern for Workers' Comp - who carries the budget, who carries the regulatory exposure, and how the engagement starts. Most first engagements are a Retroactive Proof Audit on a defined lookback window; Pre-Settlement integration follows once the check pack is calibrated to the customer's profile.

State funds

Texas Mutual ($2B+ premium, largest US WC carrier), California SCIF, NYSIF, Pinnacol Assurance, Ohio BWC (state monopoly), Washington L&I (state monopoly), North Dakota WSI, Wyoming WCD. Aggressive fraud-fighting mandates.

Private carriers and TPAs

Travelers, Hartford, Liberty Mutual, AmTrust, Berkshire Hathaway Specialty, Zurich, Chubb, AIG, Old Republic. Specialty: Employers Holdings, Amerisafe, ICW Group. TPAs: Sedgwick, Gallagher Bassett, Crawford, ESIS, Broadspire.

Federal

DOL Office of Workers' Compensation Programs (FECA $2.5B+ annual, EEOICPA, BLBA, LHWCA). DOL OIG. VA OIG. DOE (EEOICPA). DOL MSHA. Federal partner channel via Accenture / Leidos / Peraton.

Self-insured employers

Large self-insured employers in high-risk industries - construction (D.R. Horton, Lennar, Bechtel, Fluor, Turner), energy (ExxonMobil, Chevron, ConocoPhillips, Halliburton), large manufacturing, logistics (UPS, FedEx, Walmart, Amazon).

Pricing pattern

Four-SKU model. No percentage. No contingency.

Pricing carries over from the canonical four-SKU model unchanged - Retroactive Scan (flat fee), Retroactive Proof Audit (with credit-back against the next subscription tier), Pre-Settlement Subscription (tiered annual), and per-case CREB bundles (Tier 3 court-ready evidence). Asset Intelligence is the standard fifth SKU where the vertical needs it.

No percentage of recovery. No contingency. No success fees. JIL is detection and proof, not recovery. Recovery sits with the customer or its existing partners (subrogation counsel, recovery vendors, regulators). The structure is what allows JIL to operate as neutral integrity infrastructure across plaintiffs and defendants, payers and payees, regulators and the regulated, on the same case.

Ready to scope a Workers' Comp engagement?

Initial briefings are 60 minutes. Retroactive Proof Audit lookback windows, check-pack profile design, and integration runbook are available under NDA. We start where the buyer's procurement gate is shortest.