It’s not only that behemoth corporations that get hit with workers comp fraud. Smaller businesses are also victims of fraudulent claims. According to National Insurance Crime Bureau, Workers Comp fraud costs companies of all sizes about $7.2 billion annually, or 20% of all Workers Comp payments. What’s more, Workers Comp fraud becomes more prevalent during difficult economic times.
There are several steps that you can share with your clients to help them fight Workers Comp fraud at their businesses:
- Institute a zero-tolerance policy. Employees should clearly understand that owners and managers won’t tolerate fraud of any kind.
- Educate employees. Have your clients hold a safety meeting on understanding their rights regarding legitimate Workers Comp claims and the penalties involved when it comes to fraud. Have them make use of posters, flyers and payroll stuffers to get out the message against fraud.
- Minimize hazards. Be sure your clients are maintaining a safe environment at all times.
- Get workers back to work. Help your clients with a Return to Work Program with transitional and modified duties. Studies show that employees recover more quickly the sooner they get back to work.
- Communicate with injured employees. Recommend to your clients that they stay in touch with their injured workers, making it clear that they look forward to the employee returning back to work.
- Ensure that trustworthy physicians are treating workplace injuries. This means having your clients partner with a reputable medical provider.
- Institute reporting procedures. Supervisors and employees should understand the reporting procedures in place when an injury occurs. They should also report injuries immediately.
- Immediately investigate. If an accident occurs, be sure that your clients understand the necessity to investigate right then and there.
- Conduct exit interviews. Be sure documentation takes place for all those employees who are being laid off or fired. These interviews should include questions regarding physical conditions and any on-the-job accidents or injuries that may have not been previously reported.
- Don’t make accusations. Your clients should understand that alleging fraud is a serious accusation and could put them in the middle of a lawsuit. They should work with you and the claims carrier to validate any suspicions.
Caitlin Morgan specializes in the placement of guaranteed cost Workers’ Compensation. Give us a call at 877.226.1027.