This is the final in a four part series where we cover everything an insurance broker needs to know about Workers’ Compensation.
Claims have the potential to decimate your client’s business if they aren’t secured with the right coverage. Additionally, Workers’ Compensation fraud is sometimes a common occurrence that your clients need to safeguard themselves from. In this article, we’ll discuss Workers’ Compensation claims, fraud, and laws in place to protect both employees and businesses.
Workers’ Compensation Claims and Fighting Fraud
Businesses must report employee injuries to the insurance company immediately, so this is an important talking point with clients. Employers must report the injury even if the employee is only off work for one day. Business owners who don’t file worker’s compensation claims could face penalties.
While workers’ compensations may be legitimate, brokers, agents, and business owners should be vigilant about detecting insurance fraud. Employees are sometimes the perpetrators of fraud, yet medical providers or vendors may also commit insurance fraud.
According to the Coalition Against Insurance Fraud, about 10% of property and casualty losses are fraudulent. While the percentage is relatively small, it costs American consumers $308.6 billion each year.
The following tips will help businesses prevent workers’ compensation fraud:
- Create a zero-tolerance policy for workers’ compensation fraud
- Establish clear safety policies and post signage to reinforce them
- Hold regular safety meetings and offer incentives for meeting safety goals
- Watch for red flags on employee background checks (spotty work records, criminal records, etc.)
- Install video cameras to monitor employee safety (in accordance with video surveillance laws)
Businesses will welcome such tips which will keep their employees safer and lower their workers’ compensation premiums.
Workers’ Compensation Laws and Policies Protect Employees and Businesses
Workers’ compensation laws and policies are designed to protect employees and the business, and it’s helpful to reiterate this concept to your clients.
Employees will appreciate working for a company that keeps them safe on the job and that they will be fairly compensated if they unexpectedly get injured at work. Workers’ compensation will provide them with the funds to recover from their injuries and return to work at the earliest possible opportunity.
At the same time, business owners have the assurance they will pay a fair premium for their workers’ compensation policy, and it will help them attract top talent and retain it.
Looking to learn more about how Workers’ Compensation experience modification rates? Read more in this article.