Many times, the reputation of companies has been on the line when workers get injured at workplaces. According to experts, workers’ compensation law favors employees more than employers. Hence, employees are more likely to get compensated for medical benefits and lost wages, among other benefits.
However, many people obtain compensation in fraudulent ways. An employee can lie about their illness of injuries, exaggerate their conditions, or get compensation for non-work-related injuries. Illegitimate claims can cost employers a lot of money. However, there are many ways in which they can detect and avoid these frauds.
Investigate the claim
It is crucial to investigate the allegations as soon as possible. If the company owner finds any traces of fraud, they should collect all the evidence and present all the facts to the local district fraud unit as soon as possible.
Contact the insurance agent immediately
The National Institute of Insurance Crime Bureau states that workers’ compensation fraud costs businesses up to $7.2 billion annually. These claims hurt the companies financially. An insurance company will pay for the allegations, but this will mean an additional premium for the company. Getting an insurance company to investigate the claims earlier enough can help avoid fraud.
Employee background checks
Some employees have fraud records and may end up doing the same to the new employer. Doing some background checks before hiring will not cost too much. They should obtain documents such as credit records, compensation records, education records, and driving records.
There are many ways to prevent employees from cheating and to obtain workers’ compensation fraudulently. Prevention of the injuries before they happen is also a great way a company can stay clear of fraud.
