Workers’ compensation is a valuable resource for employees who are injured while on the job. However, workers’ comp fraud can make it difficult for those who really need assistance to get it. As a company, it is your responsibility to reduce your risk of workers’ comp fraud. There are several ways to protect your company and your employees from the dishonest actions of others. Workers’ comp fraud can be prevented if everyone works together.
Committing Workers’ Comp Fraud
Not every employee you hire will be honest when it comes to their work-related injuries. Dishonest employees may try to claim an off-the-job injury as work-related. They may also try to file a false or exaggerated claim. Another way to commit fraud is to continue working while receiving workers’ comp benefits. If an employee truly wants to commit fraud, they will try to accomplish it any way they can. Therefore, it is up to you and other employees to always be on your toes.
Reducing the Risk of Workers’ Comp Fraud
While hiring trustworthy people is a great way to prevent workers’ comp fraud, you can rarely tell how honest a person is through an interview. Background checks can help, but they aren’t foolproof. The best way to protect your company from fraud is to be observant and have a reporting process in place that protects the person providing you with the information. Reducing your risk involves being as diligent as possible when it comes to establishing a safe and productive work environment.
Put in place a zero-tolerance policy when it comes to false workers’ comp claims. Most zero-tolerance policies include immediate termination and a loss of benefits with the very first infraction. This policy should be clearly explained during a new employee’s orientation. Post notices in plain sight that state the penalties (both company and criminal) for committing workers’ comp fraud. Make it clear that any type of fraud in the workplace gives a bad impression to both the company and those who work there.
Create a Fraud Reporting Process
Create a fraud reporting process that protects the person providing you with the information. Protecting your employees is extremely important. If an employee willingly commits workers’ comp fraud, it can affect the entire company. It will have a devastating effect on the company’s financial health and may also dampen the morale of other workers. Making it possible for an employee to report fraud is the best way to ensure employees will stand for the company and protect it from those who will do it harm.
Preventing workers’ comp fraud is not only up to the company, it is up to everyone who works there. If you want to learn how to protect your company from workers’ comp fraud, your first call should be to the experts at Northeastern Group LTD. Our agents have the experience you need to create a list of best practices that can help minimize your risk of fraud and financial loss. Call us today and find out more!
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