Workers’ compensation provides an important safety net for employees and business owners alike. In a nutshell, a good workers’ comp policy ensures that — should an employee ever become injured or ill as a direct result of doing their job — their medical bills and lost wages are properly compensated. Workers’ comp policies are designed to provide for employees who are subject to workplace accidents, without placing too onerous a financial burden on the business itself.

As with any good system, workers’ comp can be abused. Fraudulent claims cost businesses billions of dollars every single year. And while there is probably no way to totally eradicate workers’ comp fraud, there are a few simple strategies your business can follow to minimize these abuses.

1. Establish a safety plan.

One of the most important things you can do to minimize workers’ comp fraud is to prioritize the safety of your employees. Not only will this help you reduce the number of workplace accidents, potentially making fraud cases easier to identify, but it also earns the goodwill and trust of your employees. Create and document a full employee safety plan, including steps to audit workplace hazards, investigate any incidents, and create an employee safety team to seek continuous improvement.

2. Reinforce your safety policies.

There are a number of ways to keep your workplace safety plans top-of-mind among your personnel. Instructive signage and posters go a long way. Include safety guidelines in any employee handbook that you develop. Set company-wide safety goals and reward your employees for meeting those goals.

3. Create a fraud-free culture.

It’s also important to be direct with your employees: Fraud will not be tolerated. In employee handbooks and within all workers’ comp documents, stress your zero-tolerance policy for fraud. Encourage your employees to report any instances of fraud that they become aware of.

-Information provided by: Plumber Magazine, May 1, 2023