Though insurance fraud can be a staggering problem, there are steps employers can take to lessen the risk of suspect or bogus workers’ compensation claims.
1. Challenge the common misperception that workers’ compensation fraud is a victimless crime and educate employees on the large-scale consequences. Using posters and newsletters spread the word that yzou and your insurance carrier will vigorously investigate suspect claims and refer employees who bring fraudulent claims to appropriate law enforcement agencies for prosecution.
2. Pay attention to the rumor mill. Following a workplace injury, and throughout the claims process, rumors often circulate among employees. Sometimes rumors are grounded in fact. Paying attention to worker scuttlebutt can help in investigating a claim’s validity.
3. Implement an efficient injury response plan and clearly communicate the proper practices to employees. Provide procedures for reporting occurrences. Designate appropriate personnel to process accidents and claims, secure a description of the accident, take photographs and obtain statements from the injured worker and witnesses. Promptly provide appropriate medical care and encourage employees to seek treatment.
4. Consider using video monitoring equipment. Surveillance tactics are often utilized by insurance companies to “catch” fraudulent claimants; employers can utilize similar tactics to deter fraud. Although such tactics may seem intrusive, if properly conducted at times and places where there is no reasonable expectation of privacy, it is not an illegal invasion of privacy.
5. Know how your insurance carrier handles claims. Keep the lines of communication open with your carrier or the attorney assigned to represent your interests in workers’ compensation claims. Be responsive to information requests.
For additional information, or to report workers' compensation fraud, you can contact the Virginia State Police Insurance Fraud Program. Here is the website: Virginia State Police Insurance Fraud Program.