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This is the % of worker’s comp claims that the insurance industry accepts as fraudulent every year. 20-35%! No employer wants to admit that he or she has hired an employee with less than ideal morals, but the fact remains that claim fraud is out there and in these trying economic times, industry experts are expecting more and more claims. The percentage of claims is expected to rise, not because of worker’s being unsafe, but because the future of their jobs are uncertain, whereas getting a check when they are out on Worker’s Comp is not.
I am in no way implying that all comp injuries are fraud or that all workers are trying to “milk the system”; but when more and more contractors are laying off employees and their backlogs are shrinking dramatically, business owners need to be extremely vigilant about this.
So what can you, the business owner, do to prevent these fraudulent claims?
-Report the claim immediately.
-Get witness statements ASAP.
-Ask the other workers who were on-site how this injury could have been prevented, and what could have been done differently.
-Stay on top of the claim. Insurance claim adjusters have a lot on their plate at all times and if someone, either you or your insurance broker, isn’t keeping the adjuster updated to the status of the claim, reserve dollars can be kept at unneeded levels, which at renewal, will have a HUGE bearing on your insurance rates.
-Above all, if the injured employee is out on Comp, keep in contact with them regularly, make them still feel like they are part of the company.
-Get the injured employee back to work in a light-duty capacity as fast as they are physically able to. Being among their co-workers and having to get up and go to work everyday does miraculous things for morale/recovery time.