Avoiding Bogus Workers Compensation Claims | Articles Beloved

Statistics on Fraudulent Claims

Bogus worker compensation claims can have harmful consequences on small construction companies. The number for fake claims varies from 1% to 20%, so it is difficult to determine how extensive and damaging invalid claims are.

Sources Of Counterfeit Claims

The causes of fraudulent claims can be generated by a number of different motivations and situations.

Company Culture: An organization that does not respect its workers may inadvertently motivate a staff member to take a vacation from that workplace paid by worker compensation. It is important to correct mistakes, but it is crucial to reward workers for good work with praise or bonuses. A business that does not strive to engender good morale can create resentful employees, who might stage an accident to collect workers compensation.

Low Wages: Many owners want the most out of a worker at the least amount of money. Low salaries that are below the norm can create a workforce that cannot meet their personal obligations. Filing a phony workmen comp claim can allow an employee to get income and have more time to make undeclared money, by creating a home repair service, where the claimant add those funds with his workers comp.

Hazardous Work Circumstances: Safety is not always the number one concern of some building contractors. Workers, who are faced with laboring at an unsafe building site, may be tempted to file for workmen comp. In a hazardous situation, it would not be hard for an employee to fake an injury. The disregard for the well being of his crew by the owner could easily motivate a worker to file the claim to gain the time to locate a job with much safer working conditions.

Getting over on the Company: Occasionally, an owner may end up hiring a worker, who finds it gratifying to pull a fast one on the company by filing a false worker compensation claim. Ferreting out that kind of person can be difficult. However, skillful interviewing techniques by the owner may uncover a job candidate with this kind of attitude

Runners: Some workers compensation scam artists, who include phony medical clinics and shady lawyers, hire runners to recruit employees to file bogus claims. Stress to workers that getting involved in this type of scam can entail serious fines and jail time. Encourage staff members to report any approaches by runners to management.

Combating Fraudulent Claims

Make it a policy that workers report any on-the-job injuries immediately after the incident takes place.

Create a rapport with your workers. Use your conversations to gauge what type of ethics that a person has and would that individual be likely to file a phony workers comp. claim.

Educate your staff about safe practices on the job. In certain zones, restrict the presence of clients and workers not involved in that aspect of the construction.

Utilize monitors to identify and rectify hazardous conditions. Monitors should also reprimand any employee, who displays unsafe behavior on the job. Foremen are automatically responsible for worker safety.

The monitor should be well-experienced on the job that he or she is monitoring. To be an effective monitor, the individual must have hours that are exclusively to be used in monitoring. OSHA doesn?t allow foremen to be monitors and monitors to supervise more than six people. Research the backgrounds of recent hires. Determine whether these individuals have committed criminal acts of fraud.

Let your employees know how invalid workers compensation claims by co-workers can put their jobs at risk and add to their duties.

Offer monetary rewards to workers, who identify an individual that has filed a false workers comp. claims

Check with your insurance company to find out if they employ insurance investigators to validate claims. These investigators monitor the claimant?s behavior. If the ?injured? worker is performing hobbies that require an individual to be in fit physical condition or doing odd jobs that are strenuous, the investigator reports that to the insurance company. These types of reports usually result in the immediate termination of the claim.

Make sure that your insurance company utilizes medical staff and procedures to determine return to work status. If you feel one of your workers may be ready to return to work, notify the insurance company?s medical staff.

Contractors are legally bound to carry workers compensation insurance in most states. Ignoring this insurance requirement, places you and your organization in high financial risk when completing a construction project. This type of coverage not only saves your company but also your workers from unnecessary expenses. If you go without workers comp insurance you endanger your company, employees and personal assets.

Workman compensation claims will raise employer premiums. However, construction industry occupations are oftentimes high risk. Do not cast suspicion on a worker just because he or she has been injured on the job.

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Source: http://articlesbeloved.com/finance/insurance/avoiding-bogus-workers-compensation-claims

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