Workers file fraudulent worker's compensation claims more than American businesses are ready to admit. These claims negatively impact the bottom line of their businesses. It's become a costly issue across the United States, with up to $30 billion in claims filed each year.
Knowing how to fight a fraudulent claim can protect your business from higher premiums and save the bottom line. It can restore trust in your employees and send them a clear message that fraudulent claims will not be tolerated in your workplace. So just how can you reduce workers' compensation claims in your workplace?
Mitigating Fraudulent Workers' Comp Claims
Business owners experience higher premiums when fraudulent claims have been filed. It can also flag future workers' comp claims for more detailed examination. The following steps will show you how to reduce workers' comp claims, ensuring your company and employees keep your record clean for the future.
Create a Zero-Tolerance Policy
A zero-tolerance policy is exactly as it states. There will be consequences for an employee who files a false claim. Establish up front what the penalty is and communicate it clearly to your employees. Be sure to have a detailed explanation in your company handbook and have your employees sign off that they have read and that they understand the policy.
Provide a Safe Environment for Your Employees to Report Fraud
Most employees like to do the right thing but are afraid of retaliation from the employer or an employee. Employees often know more than the executive team about the daily operations of a company, and when they hear an employee taking advantage, they often become frustrated and disgruntled. If they have a safe place to report workers' comp fraud or other issues without facing retaliation, they are more likely to come forward and help the company. In the long run, it benefits them too.
Train Your Staff on Handling Injuries
Injuries often get reported to the immediate supervisor, as they are readily available when an employee gets hurt. Employees know their supervisors and often trust them to help them accomplish what they need. These supervisors should be trained in handling workers' compensation claims and how to deal with an injured employee.
Let the supervisor be involved in transporting an injured worker to the medical facility, contacting the employee during their leave, and helping them get back on the job as soon as possible. It sends a message that your company cares and that the worker is being taken care of. This motivates that employee to want to get back on the job as soon as possible and also helps speed up recovery.
Report Injuries to Your Agent Immediately
Your insurance agent cares about you as a customer. They are the one who should be managing your claim. Report an injury to them immediately so they can make sure your employee and your company receive proper treatment.
Find an Employer Solution
Solutions like The Patriot help staffing agencies reduce fraudulent claims and save money on premiums. They analyze workers' comp claims, looking for fraud and other items out of the ordinary. With an alternate dispute resolution process and a return to work program, companies like Samuel Hale can show you how to reduce your worker's comp claims and cut down on your risk of fraudulent activity.
The solution to workers' compensation claims is often a long road — it takes time to develop a sound program that will work for your company. Samuel Hale is here to offer you support in finding the program that works best for your business. Take time today, invest in your workers' comp program, and your business will definitely benefit in the long run.