| ’ compensation, which is required by law in | | | | * No witnesses/tips from co-workers — |
| nearly all 50 states, provides medical and disability | | | | Be cognizant of alleged accidents with no |
| coverage for employees who are injured on the | | | | witnesses, particularly if the employee’s |
| job. Employers’ Liability, typically included on | | | | tasks involve working with others. Take note of |
| a Worker’s Compensation policy protects | | | | tips from co-workers who may suspect fraud. |
| employers from liability for an accident involving | | | | * Inconsistent accounts of the accident — |
| an employee. Because it is required, business | | | | The employee making the claim may give varying |
| owners often view it as a burden and another | | | | reports of the accident to the employer and the |
| operating expense, but it can safeguard a | | | | doctor. Also, watch for differing reports from the |
| company from the exorbitant costs of defending | | | | witnesses and the injured employee. |
| claims, even if those claims are considered to be | | | | * Cannot recall details — The injured |
| fraudulent. Requesting Workers’ | | | | employee may not be able to provide specific |
| Compensation insurance quotes from several | | | | details of the injury, or the date, time and location |
| companies can help business owners find the | | | | of the accident is unknown. |
| most cost effective coverage, as well as ensure | | | | To reduce the risk, business owners should |
| they are adequately covered. | | | | implement a few prevention tactics. It is often |
| Consider that in 2007, according to the Bureau of | | | | easier to prevent fraud than to fight it. |
| Labor Statistics, there were more than 335,000 | | | | Additionally, keeping claims to a minimum will help |
| cases of employees injured on the job due to | | | | prevent Workers’ Compensation insurance |
| contact with objects and equipment. How many | | | | companies from increasing rates. Prevention |
| of those were valid claims, and how many were | | | | tactics might include: |
| found to be fraud? | | | | * Focus on safety — Make the work |
| Often employers can uncover fraudulent claims, | | | | environment as safe as possible, this will reduce |
| and are typically in the best position to do so. | | | | the chance for accidents and provide little |
| Workers’ Compensation fraud is when | | | | opportunity for an injury to be faked. |
| employees knowingly lie to collect benefits. For | | | | * Know who is being hired — Background |
| instance, if an employee claims an injury is | | | | checks and verifying references on all applicants |
| work-related, when in fact it is not, or they | | | | can help employers avoid possible pitfalls. |
| exaggerate an injury, or continue to work, | | | | * Educate employees — Demonstrate to |
| secretly, while gathering benefits. There are also | | | | employees how fraudulent claims often cause |
| several proactive steps business owners can take | | | | Workers’ Compensation insurance |
| to identify and fight fraud. Some red flags to look | | | | companies to increase premiums, which could |
| out for include: | | | | result in lay offs, loss of benefits or bankruptcy. |
| * New employees — Statistics show the | | | | * Implement a return-to-work policy — |
| newer the employee, the greater the chances of | | | | Employers should develop a program, and explain |
| fraudulent claims. | | | | to applicants, that they will work closely with the |
| * Disgruntled employees — In some cases, | | | | medical care provider to help them return to |
| employees who are demoted, fired, laid off or | | | | work as soon as possible. |
| denied vacation time, believe they have good | | | | * Continued communication — Maintain |
| reason to file a bogus claim. | | | | regular contact with the injured employee while |
| * Employee is unreachable — If the | | | | they are away. Document every contact and |
| employee is difficult to contact, or never home, | | | | attempt at contact. |
| they may be holding down a second job while | | | | * Implement a zero-tolerance policy — Be |
| collecting benefits. This is referred to as | | | | sure employees understand that fraudulent claims |
| “double-dipping” and is considered fraud. | | | | can result in termination or prosecution. |
| * Accidents occur on Fridays or Mondays | | | | It is increasingly important employers review their |
| — When accidents occur on either of these | | | | Workers’ Compensation insurance policy to |
| days, and other red flags appear, suspicion should | | | | ensure they are adequately covered. |
| be raised. | | | | |