Accidents happen. And when they do, workers compensation is there to help employees heal. Unfortunately, businesses are paying out big bucks – an estimated $7.2 billion a year – into claims that are nothing more than financial scams.
It’s an unpleasant reality for employers’ pocketbooks, particularly when claims can lead to higher insurance premiums.
So what do you do? Here are a couple tips from Scott Doellinger, director of National Insurance Programs for the National Federation of Independent Business, courtesy of an interview with Fox News.
- Adopt a zero-tolerance policy: Make it clear to your employees that you will not tolerate fraud of any kind. Set a standard and stick to it.
- Document everything: Don’t rely on employees’ word when it comes to an injury. Although you want to trust your employees, be sure to document and investigate every injury to ensure that workers aren’t taking advantage of the system.
- Watch for red flags: Stay on the lookout for potential scammers. Red flags may include unwitnessed accidents, Monday morning injuries that that may have happened over the weekend and new employees that end up hurt.
- Team up with the insurance company: Work with your insurance company’s fraud investigators to keep an eye out for possible perpetrators.
Hope that helps. If you have any questions, don’t hesitate to call.