Statistics on Fraudulent Claims
Unfounded worker compensation claims can have a negative effect on construction business owners, sub-contractors and employees. Statistics on fraudulent claims vary from 1-2% up to 10-20%, so it is difficult to assess how serious the problem is for any given organization.
Causes Of Fraudulent Claims
The reasons for false claim stem from many dissimilar motives and circumstances.
Workplace Atmosphere: If the managers of a workplace,do not show the proper respect for their workers they could create a toxic atmosphere in the workplace. Workers compensation claims are many times filed by people, who are eager to get away from the conditions of their jobs. To reduce the chance of claims from disgruntled employees, owners must strive to keep up morale through regualary meeting with staff, praising workers for well done jobs and giving bonuses if possible.
Small Salaries: During these hard times, many owners offer small salaries to workers. These reduced forms of compensation may frustrate their staff because they have trouble surviving on this little money. Making a workmen comp claim may seem to a worker a way to keep his salary and benefits, while gaining extra time to make additional income by doing handyman tasks privately without reporting the earned money.
Unsafe Working Conditions: Some companies do not have the proper safety measures in place. These builders routinely put their personnel in hazardous working conditions. An employee may file a false claim to get the time and money needed to find another job at an organization, which does not place him or her in a dangerous situation.
Ripping Off The Owner: Once and a while, an employee wants to rip off the owner of a company. Sometimes this worker is spurred on to do this by egotism or just plain spite. One way to take advantage of the boss is sometimes by filing a false worker comp claim. Spotting individuals like this can be done through effective interviewing or by listening to the worker and what others have to say about this person.
Runners: Some workers compensation scam artists, who include phony medical clinics and shady lawyers, hire runners to recruit employees to file bogus claims. Stress to workers that getting involved in this type of scam can entail serious fines and jail time. Encourage staff members to report any approaches by runners to management.
Contending With Invalid Claims
Make it a policy that workers report any on-the-job injuries immediately after the incident takes place.
Create a rapport with your workers. Use your conversations to gauge what type of ethics that a person has and would that individual be likely to file a phony workers comp. claim.
Educate your staff about safe practices on the job. In certain zones, restrict the presence of clients and workers not involved in that aspect of the construction.
Utilize monitors to identify and rectify hazardous conditions. Monitors should also reprimand any employee, who displays unsafe behavior on the job. Foremen are automatically responsible for worker safety.
The monitor should be well-experienced on the job that he or she is monitoring. To be an effective monitor, the individual must have hours that are exclusively to be used in monitoring. OSHA doesn’t allow foremen to be monitors and monitors to supervise more than six people. Research the backgrounds of recent hires. Determine whether these individuals have committed criminal acts of fraud.
Let your employees know how invalid workers compensation claims by co-workers can put their jobs at risk and add to their duties.
Give a bonus to anyone, who reports a co-worker, who has filed an unjustified worker’s compensation claim.
Check with your insurance company to find out if they employ insurance investigators to validate claims. These investigators monitor the claimant’s behavior. If the “injured” worker is performing hobbies that require an individual to be in fit physical condition or doing odd jobs that are strenuous, the investigator reports that to the insurance company. These types of reports usually result in the immediate termination of the claim.
Make sure that your insurance company utilizes medical staff and procedures to determine return to work status. If you feel one of your workers may be ready to return to work, notify the insurance company’s medical staff.
Company owners are required by most state to carry workers compensation insurance. Do not embark on a project without workers compensation insurance. This coverage protects your business as well as your workers from liability. Without workers comp, your exposure to risk is dramatically expanded, and that places your personal assets in jeopardy.
Worker compensation claims will increase employer insurance costs. occupations. Do not make the mistake of questioning the validity of a claim when an honest accident has taken place.
Custom Contract Insurance is committed to providing the best protection for home builders, contractors and employee through excellent worker compensation insurance Workers Compensation insurance. Our prices are excellent and well below the Insurance Quotes of other companies.
Custom Contract Insurance is committed to providing the best protection for home builders, contractors and employee through excellent worker compensation insurance Workers Compensation insurance. Our prices are excellent and well below the quotes of other insurance companies.
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