Mar 26

Preventing Workers Compensation Fraud

Owning a business is very demanding, but it is important to partake in some of these precautionary measures to prevent workers’ compensation fraud.

  • Install a video surveillance system. The presence of cameras tends to reduce crime as it is and the ability to go back and see the accident occur helps reduce the chances of workers compensation fraud right on the spot.
  • Consider drug testing employees. Drug users are more likely to file fraudulent claims and ignore workplace safety rules.
  • Promote your workplace as fraud-free. Define and explain workers’ compensation to your employees and be sure to emphasize the legal consequences of fraudulent workers’ compensation claims. It is important to also advise employees that they are able to file an anonymous fraud claim.
  • Prioritize workplace safety with flyers, posters, newsletters and monthly meetings. Safer environments make fraudulent workers’ compensation claims less likely. During these meetings, it is important notify employees of the step-by-step process to take if you or one of your co-workers is injured.
  • Most importantly, your business insurance comes with a special investigation unit (SIU), which is implemented to investigate any doubtful claims. This investigation unit is intended to prevent any fraudulent claims from damaging your business.
  • Improve your hiring practices. Run more thorough background checks and be sure to look for any red flags indicating previous fraud convictions or accusations. Some of the red flags include:
    • Child support lien
    • Criminal record
    • Exaggerated details of a previous incident
    • Skeptical work history – look for “job jumpers”

Contact Weeks & Associates Insurance Services to talk one of our specialists about preventing workers’ compensation fraud in your workplace.

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