US is a nation which often goes out of its way to protect the rights of workers. The workers compensation coverage is one such legal protection. Unfortunately, this often gets misused. And, the trend often comes as a great challenge to well-meaning employers. However, this does not have to scare you away from offering your staff the protection they deserve. Just take the following measures and you would minimize or eliminate the instances of workers compensation coverage fraud.
How to prevent workers compensation insurance fraud?
Know that preventive measures are always better than having to handle things in such a way as to offend anyone. It is true that you can fire an employee or even report the instances of fraud to the authorities. But, experiment the following measures before going the harsh way.
- Take control of the provisions for leave
The best way to prevent workers compensation policy abuse is being part of the “leave administration” in your company. Make sure that there is a handbook which clearly states the policies regarding workers leave and everything related to it. The employee should also be offered light duties when he/she is undergoing treatment for an injury. You should also make sure that you stay updated with the restrictions doctor may impose on the person in question. The measures should be designed in such a way as to convince your employee that you want to bring him/her back to work as soon as possible. Evaluate the worker’s doctor-imposed restrictions at regular intervals. You can determine the frequency as something like, whenever the individual consults a physician.
- Encourage honest dealings
Talk to your staff about their rights and obligations when getting benefited from the workers compensation coverage you have set in place for them. You should also keep on stressing the fact that fraud is a criminal activity and it can have serious consequences. The most feasible way to do this is to announce it through newsletters or bulletin boards.
- Prevent fraud from the start
Surveys say that opting for the best practices in the industry when hiring can help you prevent fraud to a great extent. Try not to hire anyone with a criminal background. Experiences show that a thorough background check of the candidates of your choice would be enough to detect fake claims and other deceptive practices.
- Monitor your staff
There are numerous ways you can monitor your staff. Search for the one which you feel would work best for your company online and go for it. Constant monitoring is known to be quite effective in preventing fraud at workplace.
- Be aware of your rights and obligations
As you know, ignorance can prove disastrous when operating your business, especially with regard to workers compensation. Explore your State’s website to have an understanding of your rights as the owner of a company. This would help you eliminate fraud by depriving the benefit when you detect anything of the kind.
Workers compensation insurance is a legal requirement for an employer. Frauds too can happen at times. Staying alert is the only choice available for you.
Contact Person: Goran Mijailovic
South California Insurance Company
Address: 801 Washington Street San Diego, CA 92103
Tel/Fax: (619) 296-1228