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Small business workers’ compensation fraud on rise

Date: 05/08/2006 | Category: Business | Author: Claire Reid

Recent incidences have indicated a rise in fraudulent workers’ compensation claims. Businesses, particularly small businesses are hit badly due to fraudulent compensation claims. While there are no clear and certain indicators to know the ‘degree of fraud’ in a worker compensation claim, it is wise for a small business owner to be cautious for few symptoms. While an injury is not work related, the worker claims it to be so, and collects the benefits accruing from the claim. 

Usually newer employees are likely to use the compensation claim than an old employee. It is better to keep a closer eye on a new employee. An employee, insulted or simply reprimanded in front of others may plan a secretive revenge. As a good HR practice, always appreciate your employees in front of others, but reprimand him when alone. Probability of the employee to be loyal to your organization is likely to be more. Carefully study the claims made by the employee to the organization and medico who has checked him. Look for finer differences between the two statements. Person with malicious intentions is likely to be tripped in corroborating stories.

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