It is essential for companies to have work compensation insurance for their employees, but employers can become stressed while looking at policy costs. Fraud can play a factor in rising insurance costs. Many companies are working diligently to combat this problem by establishing a better fraud investigation process.
Identifying Types of Fraud Abusers
The majority of claims are legitimate. Those employees attempting to take advantage of the system usually fall into a few different categories. Abusers are employees who were not injured at work; their injury was sustained elsewhere, but they attempt to make the company pay for their injury. Opportunists are employees who were injured on the job, but they try to take additional benefits they do not deserve. These employees could try to exaggerate their symptoms and draw out claims for longer periods of time. Forgotten employees do have legitimate at-work injuries and claims; however, if their claim is put off or their job is replaced, they may retaliate by embellishing their circumstances.
Preventing Injury Will Help Reduce Fraudulent Claims
Working to prevent injuries in the first place will help reduce the filing of fraudulent claims. Supervisors and employees should be trained on correct company procedures to reduce the risk of injuries. This includes learning how to properly lift equipment and instructing employees to report unsafe working conditions. Not only will enhanced safety training reduce work compensation insurance claims, it also will create a better working environment for both supervisors and employees.