Worker’s compensation fraud cases are on the rise. According to the National Insurance Crime Bureau (NICB), these false claims cost insurers in the US roughly $30 billion annually. This begs the need to devise effective methods to deter claimants from cheating the system. Here are five practical tips for preventing fraud with workers comp.
1) Create a Safe Working Environment
Prioritizing workplace safety can lower the number of workers’ compensation fraud cases. Employees who are entitled to monetary assistance are typically injured at work.
But a safe environment eliminates potential hazards that could put workers in harm’s way. Consequently, this makes it hard for false claimants to find proof confirming they were involved in a workplace accident.
Training workers to handle workplace equipment properly can also help establish a safety culture. Again, employers can provide visual safety aids to help them steer clear of insecure areas.
2) Conduct Thorough Investigations
Looking into filed insurance claims is another excellent strategy for preventing fraud with workers comp. By probing into the evidence provided, insurance companies might be able to determine whether a claim is genuine or false.
Claimants should clearly describe the workplace accident, stating its location, time, and date. Any discrepancies should prompt further investigation before the release of the compensation payment.
3) Educate Workers on Preventing Fraud with Workers’ Comp
Enlighten your employees about workers’ compensation to discourage them from committing insurance fraud. Start by explaining the advantages of reporting legitimate claims. You should also expound on the penalties for filing false claims and how the consequences could affect their lives.
The truth is that a great deal of employees commit worker’s compensation fraud because they are misinformed. Some, fueled by the misconceptions published online, deem it a get-rich-quick scheme. Others don’t think it can bring any life-changing repercussions.
4) Show Concern for All Employees
Treating workers fairly may reduce fraudulent claims. Your employees will likely feel more valuable when you express concern about their well-being. The potential outcome? They’ll be more satisfied and motivated at work. This minimizes their chances of filing false claims. It also improves communication, allowing them to voice concerns about workplace safety.
Your former employees need to know you care about them as well. Otherwise, they might be disgruntled. This could push them into filing false claims to get even with you. To avoid this, conduct exit interviews to collect information about on-the-job injuries that may be unreported. You can also help your ex-employees transition to their next chapter in life.
5) Consult with a Trustworthy Medical Provider
Hiring a reliable medical provider to work on employees’ compensation can keep claims above board. They should perform various diagnostic procedures to determine a claimant’s nature and extent of injuries. This could help weed out frauds looking to take advantage of the system.
In Closing
These five strategies could play a significant role in preventing fraud with workers comp. Still, companies can combine them with others to guarantee success. Advanced analytics, for instance, leverage modern technology to detect and prevent insurance fraud. Investing in the software can be fruitful in the long run.
