The Percentage Of Bogus Claims
Bogus worker compensation claims can have harmful consequences on small construction companies. The number for fake claims varies from 1% to 20%, so it is difficult to determine how extensive and damaging invalid claims are.
Causes Of Fraudulent Claims
The causes of fraudulent claims can be generated by a number of different motivations and situations.
Working Environment: A company needs to show that it appreciates its workers. When an organization fails to sustain a high level of morale, a discontent worker may go as far as creating an accident on the job to collect worker compensation. Businesses need not only to correct errors, but also they need to praise employees for well done work. Happy workers are less likely to file worker compensation claims.
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.
Scamming The Company: Often enough employees want to scam the company that they are working for. They are motivated by seeing their behavior as a harmless piece of larceny. When their scam includes filing a bogus worker comp claim, this could be costly for the owner. To avoid having these type of workers, check references thoroughly before you hire any individual.
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.
Combating Fraudulent Claims
Require employees to inform management directly after about any accidents on the job.
Get to know your workers. A good understanding of the character of an employee can give you insight into whether he or she is filing a false 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 quotes http://tinyurl.com/6oaobbm of other insurance 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 http://tinyurl.com/6oaobbm of other insurance companies.
This entry was posted on Wednesday, February 1st, 2012 at 3:44 pm by Marie King and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
Source: http://centired.com/2012/02/avoiding-bogus-workers-compensation-claims/
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