Workers’ compensation fraud is something no business wants to deal with. It can cost all businesses, consumers, workers, and shareholders a lot, and it’s best to avoid it. So, if you want to stay away from this type of fraud, here are seven steps you can take.
- Know Who Pays for the Claims
You should always know who pays for the workers’ compensation fraud. It’s not the insurance company as you may think. It’s actually the employer, so it’s going to affect you and your money.
When a claim for workers’ compensation is made, the insurance company only advances the money to the employer. Afterward, the employer will be charged some premium for 3 years after the Experience Modification Factor goes up.
- Train Supervisors about Injuries
The supervisor will be the one to collaborate directly with the worker, so you always need to train them to handle a worker’s injuries. Training the supervisor will ensure the well-being of the worker, as he/she will be the one accompanying the employee and also contacting him/her during the recuperation period. This will show the employee that you care.
- Report Injuries as Soon as Possible
As soon as the injury occurs, you should contact the insurance agent and report it. The agent will then contact the insurance company. Since the agent will work on your behalf, he/she will deal with the claim.
Therefore, the aim becomes having the employee receive the right care and treatment in order to recover to make sure they don’t end up contacting a personal injury attorney first. If the protocols are respected, there will be smaller chances of any fraud happening.
- Instruct Your Employees
Your employees should be able to understand how workers’ compensation works, so make sure you instruct them properly. This will prevent fraud from happening. On top of training them, ensure you let them know that fraud is a crime, and authorities will take the right action if it happens.
- Install Surveillance Equipment
Good surveillance equipment will make it possible to detect workers’ compensation fraud. Having cameras installed in the building will make employees think twice before committing workers’ compensation fraud.
- Perform Background Checks
Before hiring someone, you should perform pre-employment background checks. Background check reports should include things like educational records, social security records, credit records, driving records, criminal records, and workers’ compensation. It is not cheap, but it is worth the costs, rather than having to deal with workers’ compensation fraud costs.
- Always Investigate
After the incident happens, make it your mission to investigate the situation. Learn everything about the incident and what led to the injury. It will ensure you know all the facts and that you prevent a similar thing from happening again. Not to mention that it will help you have all the facts in case fraud is involved.
Final Thoughts
Stopping workers’ compensation fraud is possible if you take the right measures. Make sure to follow these steps if you want to reduce the chances of fraud.