It’s crucial to spot Red Flag potential Fraud situations that can cost thousands of dollars and potentially destroy Company Culture.
Even after getting through the hiring process, a new employee might have some dishonest motives. The biggest motive is easy money.
Sometimes workers may work a second job or have a side business while making false claims that they are too injured to work. They would be receiving lost wages from their workers comp policy while also earning money from their other job.
Another draw to fraud is time off.
If a worker is dishonest, he/she can collect insurance money and claim they are unable to work while pursuing other activities.
Common Cases of Fraudulent Claims
- Late reported Injuries
- Claims Reported first thing Monday Morning
- Hurt Off the Job
- Fake Injuries
- Old Injury
- Inflated Injuries
What Can Business Owners Do to Combat Work Comp Fraud?
It’s important to have a safety program in place to prevent accidents from happening in the first place. However, if an accident does occur, it’s important to have post injury management procedures in place. Having an Insurance Carrier that is aware of the red flags can help as well.