Business owners rely on insurance providers in times of need. The process of making a claim and receiving benefits has many steps, and unfortunately, this opens up opportunities to make false claims. With many stakeholders involved, workers’ compensation fraud is a common crime, but here are some essential strategies that can prevent it.
What Is Workers’ Comp Fraud?
Employees, employers, healthcare professionals, or insurance agents can falsify workers’ compensation claims. From fake injuries to false estimates of safety and risk, there are many facets to this illegal activity. Here are some examples of this kind of fraud:
- An employee claims workers’ comp benefits while working at a different job
- An employer claims benefits but does not provide workers’ comp to employees
- A healthcare provider falsifies records of care but accepts payments
How Can You Prevent Fraud?
The most important way to prevent workers’ compensation fraud is to establish a transparent and thorough process to investigate claims. Business owners should communicate this process to all employees. Workplace safety should be a top priority, and there should be little to no time delay between a reported incident and an investigation. Companies working with employees to stay in touch and paving the way to return to work reduce the chance of fraud.
Employees have the right to a safe workplace and a guarantee of workers’ compensation. By following these strategies, business owners can ensure that this important process protects every stakeholder.
