Make Preventing Workers’ Compensation Fraud a Priority

Workers Comp FraudWorkers’ compensation fraud is something employers work hard to avoid because it ends up costing them a pretty penny… yet plenty of employees commit this criminal offense each year. 

There’s claim-related fraud, where an employee falsely claims a work-related injury or illness (or exaggerates an existing injury/illness) in order to gain a workers’ comp insurance benefit. And there’s policy-related fraud, where a policyholder and/or insurance agent under-reports a business’ payroll or mis-classifies employees in order to obtain a workers’ comp insurance policy at a lesser cost. 

What are some things business owners (and their employees) can do in order to prevent workers’ compensation fraud? 

First, they can maintain accurate business records. No employee should be mis-classified. Errors need to be fixed. Payroll needs to be accurate. Have more than one person check records. Have an objective third-party examine business records for accuracy and truthfulness. All it takes is one bad apple to spoil a whole bunch, so accountability is key.

Next, put forth a “zero-tolerance” policy on workers’ compensation fraud for the business. Make sure employees know that fraud isn’t tolerated. Have them read, understand and sign anti-fraud policies. Leadership needs to set the tone for a business!

Also, hire and work with honest/trustworthy people. Before hiring someone, run a background check on them. Do they obey rules? Do they have a spotless record? How are their references? 

Finally, always make sure employees have several ways to report fraudulent activity, such that they don’t fear losing their jobs if they let the boss know someone else isn’t truthful. Ideally, it’s good to have anonymous ways for employees to tell employers about potentially fraudulent activities going on. 

Did you know LawDog Security and Investigations Inc. works with insurance companies to uncover insurance fraud? If your company needs assistance with a workers’ compensation claim, LawDog has highly trained and motivated investigators. We work with your company to determine a course of action and then execute it with precision. LawDog seeks to provide you with hard evidence as well as detailed reports to show the truth of the incident and give you the facts. For a free initial consultation, please call 1-866-LAWDOGS (529-3647) or 1-773-233-5742.

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