Workers’ compensation insurance is a useful tool for business owners. Many states require the coverage by law, and many employers and employees appreciate the peace of mind it brings to know on-the-job injuries are covered. However, there are some instances where employees may commit work comp fraud. Here are the top three ways to prevent that from happening.
One of the simplest ways to know what happened on the job is to install security cameras on the premises. This will act as both a deterrent and a means for investigating claims to know exactly what occurred and how it fits with the injured employees’ story.
Watch for Patterns
Workers who seem to have problems in their employment past or are prone to injury can be cause for extra scrutiny. Also, be on the lookout for employees who may try to come in already injured and claim it happened at work. Any indication of injury such as limping or bandaging should be noted.
Require Background Checks
Employees who are in financial trouble or who have substance abuse issues are more likely to try to commit work comp fraud. Thoroughly vet your new hires with credit checks, criminal background checks, and even periodic drug testing.
Workers’ compensation coverage is sometimes attractive to people looking to cash in on your policy while never having to return to work. Knowing how to prevent fraud is key to keeping those bad actors at bay.