Workers’ compensation fraud can be a major expense and therefore a significant risk to any employer. However, it is easier to prevent than you think. With a few easy steps, you can help prevent fraud from happening within your company.
Monitor The Trends Of Workers’ Comp Claims
The biggest indication of potential workers’ comp fraud can be found in prior claim reports. Look for trends or repetition, then ask yourself these questions:
- Do the claims seem to happen frequently on Monday mornings above any other day?
- Do the circumstances of the accident that caused the injury seem suspicious?
- Is there a particular employee or group of employees that always seem to get hurt?
- Are/is there a particular person or persons who always seem to be the ones that witness an accident?
Look through your reports and use the information you find to identify trends that might point towards fraud. If you find anything suspicious, look into it immediately.
If An Employee Does Become Injured, Have A Supervisor Go With The Injured Employee To The Hospital Or Doctor's Office.
Not only will this show that the company cares about the welfare of the injured employee, it will also ensure that the employee doesn't try to commit any kind of fraud by exaggerating the incident. Another trigger that there may be fraud is if the employee insists on seeing a particular doctor over another equally qualified doctor, especially if the doctor is not his or her primary care physician. Depending on the state you’re in, you may be able to direct medical care to an occupational doctor of your choosing.
Create A Fraud Prevention Unit
If you don't have one already, create and institute a fraud prevention unit in your company. Make sure all employees from the top to the bottom of the organization are aware of the unit and that fraud will not be tolerated. Include an anonymous tip line that any employee can call in to report a case of workers’ compensation fraud.
Educate Your Employees
It's hard to believe, but some employees may not be aware of what constitutes workers’ comp fraud. When you roll out the fraud prevention unit, this would be a great opportunity to educate your employees on just what workers’ compensation fraud is. Make sure to stress the consequences of being found guilty of committing the fraud as well.
Screen Potential Employees
New employees have the highest percentage of workers’ compensation fraud. Conduct thorough background and driver's license checks and verify references, including and especially any previous job references. If the prospective employee lies about anything regarding their background or employment, they are more likely to lie about a work injury.
These are just a few of the ways you can help prevent workers’ compensation fraud. The key is to be proactive and not reactive, so you must be constantly vigilant and aware of what is happening within your company.
Are there other methods that you use within your own company? What is your best advice for other business owners on how to manage workers’ compensation fraud?
