Workers Comp Fraud: How to Avoid It

If a business owner wants to succeed, they need to create formal rules for their employees to follow. Companies that don’t follow rules are doomed to fail. When it comes to workers’ compensation fraud, many small business owners wrongfully assume that they can take a hands-off approach; they don’t have rules because they figure insurance companies will take care of the process for them. Ignoring job injuries can cost you in the long run. Follow these steps to help prevent fraud:

Immediately Report Injuries

If there’s an injury at your workplace, make sure to contact your insurance agent immediately; your agent is there to help you and can contact your insurance company for you. If you contact your insurance company directly, your agent has a harder time managing your claim.

When you report injuries quickly, your employee is more likely to receive proper treatment; when they receive prompt treatment, they are less likely to commit fraud in the future.

Train Supervisors

Supervisors have close relationships with workers; therefore, they are an employee’s key contact when an injury occurs. Supervisors need to know what to do when injuries occur. When an accident occurs, the supervisor should accompany the worker to a medical facility.

Make sure your supervisor lets your employee know just how important they are to the company. If an employee feels needed, they are less likely to file fraudulent claims.

Investigate Accidents Immediately

It is important to quickly gather information after an accident. The quicker you learn about an accident, the quicker you can work on fixing it. As time goes by, people tend to forget the facts; if you investigate as soon as an accident happens, details will still be fresh in everyone’s mind. If you suspect fraud, contact your insurance agent immediately; they will help you investigate.

Employee Background Checks

If employees have a history of compensation fraud, you need to avoid hiring them; always make sure to run a background check on everyone you hire. Reliable information can help you avoid employees who are likely to file fraudulent claims.
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