What if I were to tell you that one in four business owners installed surveillance cameras to monitor employees on the job and one in five owners feel unsure about how to properly identify workers compensation scams? According to the Coalition Against Insurance Fraud, this is an accurate depiction of today's business owner. So, how can you protect yourself and your business? Following these important steps can be helpful in identifying potential fraud and mitigating risk to your organization.
First, establish a safety program that allows employees to voice their concerns. It is important to show your employees you care about their working conditions by correcting any safety issues immediately. Also, implement ironclad anti-fraud policies and procedures and disseminate to all employees.
Second, inform employees your company has a zero tolerance for fraud and show them how to report suspected fraud in a confidential manner. An employee reward program for reporting suspicious claims which leads to a conviction is an excellent way of promoting this initiative.
Third, require employees to report all workplace accidents immediately and ensure the injured employee receives treatment promptly. In addition, alert your insurer and let them know about suspicious claims immediately. Encourage them to perform an active investigation of suspect claims. If you would like to know what the warning signs are, obtain a list of fraud indicators from your workers' compensation insurer.
Last, but not least, have your human resources team screen applicants by conducting criminal background checks and looking to see if the potential candidate has a history of suspicious injury claims. Early detection can prove to be a difference maker from a cost and resource perspective.
Remember, most employees are honest and trustworthy. Only a small number have ulterior motives and are out for personal gain by faking injuries, but the damage they cause can be significant. Protect your business and your honest employees through due diligence and preventative measures.