Workers' Compensation

3 Ways to Prevent Workers’ Comp Fraud

Chelsea Bikner
Workers’ Comp Fraud
Reading time 3 Mins
Published on Dec 20
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While most workplace injury claims are legitimate, workers’ comp fraud costs American businesses billions of dollars each year. When an employee is injured on the job, your first commitment is to their health and well-being, ensuring that they work through the Bureau of Workers’ Compensation system to get the help they need to recover and return to work. When an employee fakes an injury or misrepresents how an injury occurred, it can be a valuable distraction for your business, your workers’ compensation partners, and your workforce. Watching out for the signs and taking active steps to prevent fraudulent claims can help save your business thousands of dollars on your workers’ compensation premiums.

Listen to employees

Chronically disgruntled employees are the strongest predictor of workers’ comp fraud. If you frequently hear complaints or know that employees are unhappy with their working conditions, listen to what they’re saying and make changes where necessary. Demonstrate to employees that their safety and health are a top priority for your company.

Make it easy for employees to bring safety concerns to supervisors or your company’s safety director. Where necessary, take appropriate actions to make conditions safer or to correct any issues that could put employees in danger. Ensure that employees don’t receive any backlash for their reporting efforts from managers and supervisors for reporting safety issues.

Make reporting easy

Establish a reporting system that enables employees and supervisors to easily report suspected fraud. Your management team should take suspicion seriously while being careful not to cast accusations or guilt about blindly. Report these suspicions to your MCO and allow them to handle it from there. Workplace gossip about potential fraud should not be tolerated and can damage your safety reputation if other employees believe that you don’t take injuries seriously.

Mind the cameras

If you have a security system in your workplace, it can perform double duty in helping to prevent workers’ comp fraud. You can review any workplace incidents that result in injury and share the footage with your MCO and the BWC.

Whenever an injury occurs, you should forward the footage of the incident to your MCO immediately. This will allow your MCO to develop a plan of action if the nature of the event appears to be suspect. If the claim is legitimate, your safety team can also use this footage for future safety training and to make suggestions for safer work practice in the area where the incident occurred.

Helping you spot and prevent fraudulent claims

With more than one in ten small and mid-size business owners concerned about employee-based workers’ comp fraud, you should take steps to help identify and prevent false claims – for the protection of your business and your other workers. Receive your no-cost analysis from Sheakley today to learn more and to get more information about the workers’ compensation system in Ohio. Just complete the AC-3 and one of our Workers’ Compensation experts will be in contact soon.

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