How to Avoid Workman's Compensation Scams as a U.S. Employer

As a U.S. employer, you are responsible for filling legitimate workman's compensation claims on behalf of your employees. This can create an extraordinary expense under normal circumstances, but what happens when false claims are filed? Many companies wind up in bankruptcy because of workman's compensation scams, so follow these tips to avoid them in your company.

Initiate a Strict Hiring Policy

Particularly with small U.S. employers, hiring policies sometimes become slack and hiring managers begin to take candidates at their word. This is a dangerous mistake. Many workman's compensation scams aren't discovered because the employer failed to check background histories with past employers to learn about work ethic and possible cases of fraud. Remember, most scam artists survive by continually committing the same scam over and over.

Eliminate Unnecessary Work Hazards

If you make it difficult for anyone to injure themselves legitimately, you'll find far fewer workman's compensation scams. The employees can't figure out how to fake an accident or injury, so those who are looking to commit fraud go somewhere else. As a U.S. employer, you are responsible for the safety of your employees, so this practice makes good business sense anyhow. Eliminate possible disasters and implement safety procedures.

Create an Emergency Protocol

Many workman's compensation scams slip through the cracks because no one takes the time to handle claims efficiently. As soon as someone claims to have been injured on the job, someone else should be responsible for overseeing his or her medical care and evaluating the injury. This way, you'll know that a bloody finger doesn't constitute six months workman's compensation. Someone will have witnessed the injury and followed through.

Evaluate Red Flags