3 Ways to Help Prevent Workers Compensation Fraud

Posted on: 12 January 2017

Anytime you hire employees to complete tasks for your business, you open yourself up to the risk of a workers compensation claim. These claims are made by employees who are injured doing job-related tasks, and they are paid out by your insurance company. Unfortunately, some employees choose to take advantage of the workers compensation program by filing fraudulent claims. These fraudulent claims can cost your company both time and money.

Here are three simple things that you can do to help prevent workers compensation fraud at your place of business in the future.

1. Screen potential employees thoroughly.

One of the easiest ways to prevent workers compensation fraud is to avoid hiring employees who may have a history of filing claims in an effort to collect insurance money. Anytime you have a position become available within your company, you should be diligent when it comes to screening the candidates who apply.

Make sure that you take the time to call previous employers to gather information on the candidates. These past employers will be able to tell you about any workers compensation claims filed by the candidate during his or her time of employment. Multiple claims could be a red flag that warn you of the potential for fraud.

2. Install security cameras.

Choosing to invest in the installation of security cameras throughout your company's building can be a great way to eliminate fraudulent workers compensation claims. Whenever an employee files a claim, you can easily check the footage captured by the security camera on the date and time the employee indicated the injury occurred.

Having video footage of injuries allows you to determine which claims are fraudulent and which are legitimate. Be sure that you consult with your attorney prior to the installation of security cameras throughout your building so you can ensure that you are in compliance with any rules and regulations governing this type of surveillance.

3. Prosecute any fraudulent claims.

Another simple way that you can deter employees from filing fraudulent workers compensation claims in the future is by making the choice to work with your attorney to prosecute any fraudulent claims that are identified.

Filing a fraudulent claim (whether the entire claim is fraudulent or the extent of the employee's injuries are exaggerated) is subject to criminal prosecution. You can work with your attorney to gather the evidence necessary to prove fraud, then hand this evidence over to the authorities for prosecution. Knowing that you will work to see fraudulent employees prosecuted in court will help deter any future fraudulent workers compensation claims.

Finding simple ways to eliminate fraudulent workers compensation claims will help your company reduce its insurance costs and maintain a more productive workforce in the future. Talk to an attorney like those at Prediletto, Halpin, Scharnikow & Nelson, P.S. for more information.