Putting An End To Fraudulent Workers' Compensation Claims: 2 Tips For Your Business
Carrying adequate workers' compensation insurance is essential for business owners today. If an employee gets injured while working, your company could be held legally responsible for the damages. Unfortunately, there are some workers out there who lack moral fortitude and will try to take advantage of the workers' compensation claim system.
The National Insurance Crime Bureau estimates that 25% of all workers' compensation claims contain an element of fraud, costing employers a significant amount of money each year. Here are two tips you can use to help put an end to fraudulent insurance claims from your workforce in the future.
1. Create a transitional work program that will allow injured employees to return to work as quickly as possible.
Many unscrupulous employees see the workers' compensation program as a way to receive payment for staying home from work. This could cause an employee who has actually received an injury to exaggerate the severity of the injury in order to extend his or her paid time off.
Creating a program that allows injured workers to return to work as quickly as possible can help you weed out fraudulent claimants hoping for a free ride. While an injured employee might not be able to return to his or her original job, having the employee work in the office or answer telephones can be a great way to avoid aggravating an injury while still receiving labor for the wage you are providing.
2. Thoroughly screen new hires for any evidence of previous fraud.
When you need to hire new employees quickly in order to maintain production levels, it can be tempting to overlook conducting a thorough background check on each applicant. By taking the time to contact former employers and contract with a personal investigation firm that does personal and professional background checks before extending a job offer, you will be able to spot candidates that might have a history of job hopping or previous fraudulent claims.
When you avoid hiring employees who are predisposed to fraud, you can reduce the amount you pay out in workers' compensation claims each year. Modify your hiring procedure to ensure that thorough screening of every applicant takes place, regardless of time constraints.
While workers' compensation insurance plays a vital role in helping to protect employees from the negative financial effects of a workplace injury, it's important that your company takes the necessary steps to help protect itself from the negative financial effects of fraudulent workers' compensation claims. Contact a law firm like Zavodnick, Perlmutter & Boccia LLC for more info.