Workers' compensation fraud can be very costly for employers. Many employers believe that by simply purchasing workers compensation insurance, they have done their due diligence and it is up to the insurance company to handle everything. This attitude is what contributes to increased costs for workers compensation insurance. Employee injuries are expensive and can be detrimental to your business. When it comes to workers' compensation you should know what your responsibilities are to be sure you’re keeping your costs low, your employees happy, and your productivity high. You have the most to lose, so it's up to you.
Repair: The moment an incident occurs, the primary goal of every employer should be to repair the injured worker. The employer has the responsibility to ensure that each injured employee receives proper treatment to facilitate a speedy recovery. The employee should feel cared about and taken care of.
Report: It is crucial that all injuries are immediately investigated by the employer and reported to their insurance agent. An investigation should launch as soon as the incident occurs. Investigations should include photos, interviews, and any information that adds to your knowledge. When your employees understand that even minor incidents will be investigated immediately they are less likely to attempt fraudulent claims.
Retrain. Employers have the responsibility to train their managers or immediate supervisors to be able to handle most types of injuries. These are the individuals on the front line who are usually the first to know when an incident occurs. If medical attention is necessary, the supervisor should accompany the worker to the medical facility.
Recover: Fraud often occurs because an injured worker feels their employer is not giving them the assistance they deserve during recovery. If an employee continues to have ongoing pain from their injuries and feels that their employer doesn’t care, it becomes a breeding ground for fraud. Employers should follow-up with injured employees to be sure they are recovering and returning to work as soon as possible.
Reiterate: Employers should teach all employees about workers compensation so they understand your rights and responsibilities. Knowledge is key; when employees understand what workers compensation is, and more importantly, what it isn’t, they are less likely to try to file fraudulently.
Record Check: Most employers want to avoid hiring a workers' compensation claim waiting to happen, so it is crucial to complete a background research in the hiring process. Include the applicant’s workers compensation injury record, credit records, educational records, driving records, criminal records.
These are just six of the many things you, as an employer, are responsible for when it comes to protecting yourself against workers compensation issues. Worker’s compensation claims cost time, money, and can decrease productivity. Doing your part can reduce the number of incidents and eliminate fraudulent claims.
Braden Insurance Agency has been providing auto insurance, homeowners, health insurance, life, long term care, & medicare supplement insurance to Louisville, KY area residents since 1961.