Workers’ compensation insurance is designed to help cover an employee’s treatment costs and lost income in the unfortunate event that they are hurt at work. It is also meant to cover an employer from incurring financial losses that may result from a workplace-related injury.
Unfortunately, it is not unusual for workers’ compensation benefits to be used incorrectly. Sometimes, these incorrect uses are fraudulent in nature. As an employer, it is important that you put in place measures to prevent workers’ compensation fraud.
Here are simple steps you can take to minimize and possibly eliminate incidents of workers’ compensation fraud in your organization.
Proper screening of applicants during the recruitment process
The importance of diligence when hiring new employees cannot be overstated. Bring onboard employees who qualify for the roles you have open and fit in well with your organization’s safety culture. You can learn a lot about a candidate by asking questions that reveal their integrity and commitment to workplace safety. Thoughtful yet open-ended questions can give you a glimpse into the employee’s true colors and help you decide if they are a perfect fit for your organization.
Examples of questions you can ask during the recruitment process include:
- How would you approach your work?
- Describe a work situation in which you exercised your teamwork skills?
- If your supervisor asks you to lie for them, how would you respond?
Thoroughly investigate every report of workplace injury
Regardless of the circumstances, it is important that you thoroughly investigate all reported injuries. Taking time to investigate how an accident happened is important for your workplace safety program. Remember, a thorough understanding of the root cause is the first step to preventing future accidents in the workplace.
Besides promoting safety improvements, thorough investigations can also expose potential inconsistencies or suspicious injury claims. Always collect all the crucial information about workplace accidents as soon as they are reported.
Workers’ compensation fraud happens in many ways. There is insurance carrier fraud, employer fraud and even claims fraud. Adopting these best practices can help you prevent incidents of workers’ compensation fraud in your organization.
