The idea of having employees insured against workplace accidents was a noble one, given the millions of such accidents that occur every year. However, it came with its set of challenges, mainly in the form of fraud.
Workers’ compensation fraud runs in the billions annually, and employers bear the brunt of it. They end up costing your business a lot through increased insurance premiums which could significantly affect your company’s finances in the long run. Therefore, you need to be proactive in protecting your business against such fraudulent claims.
What can you do about it?
While it is almost impossible to weed out every case of fraud, you can save your business by minimizing the impact of such instances.
First, you can first start by properly screening employees before hiring them. Then, conduct due diligence on every potential employee, even if you have to reach out to their former employer.
Secondly, you need to work alongside medical providers specializing in treating occupational injuries. That way, you will be assured that employees get the proper treatment and that their injuries are well documented.
Thirdly, it is also crucial that you treat your injured employees well and ensure they get the treatment they deserve. A positive work environment promotes accountability among employees, which will, in turn, reduce incidences of fraud.
Lastly, have an effective workplace policy with zero tolerance to fraud. Most importantly, ensure that all employees are aware of the position of the business regarding fraudulent claims to discourage the vice.
Staying ahead of the situation
In most cases, fraudsters are always a step ahead. However, if you are aware of the red flags to look out for, you might have the headstart you need to safeguard the interests of your business against fraudulent workers’ compensation claims.