Tips For Avoiding Fraudulent Claims Against Your Workman's Compensation Insurance Policy

Commercial insurance policies protect your small business from financial losses resulting from situations outside of your control. For example, a general liability policy protects your business in case someone slips and falls in your parking lot, and a workman's compensation policy protects your business if an employee is injured on the job.

Since your business pays a fair amount of money each month in insurance policy premiums, it is important to do everything you can to prevent filing claims. Every claim against a policy will very likely result in a higher premium, so avoiding claims is a great way to save your company a lot of money.

Workman's compensation insurance is a commercial policy with a lot of potential for fraud by your employees. If an employee files a claim and is successful, then your premiums will go up. To avoid fraudulent claims, consider these tips that have already helped other business owners:

Screen Applicants With an Eye Towards Future Issues

The best way to prevent workman's compensation fraud is to hire honorable and honest employees who wouldn't ever consider filing a fraudulent claim. To do so, carefully screen applicants for open positions with an eye towards potential future problems.

For example, you should always trust your gut instinct when interviewing. If someone feels "off" to you, then move on to a different applicant. Don't second guess this feeling. Also, check references on every applicant - even the ones that seem "perfect". Often, the perfect candidates are the ones who are smooth talking and have troubled employment histories. Sometimes a simple phone call to a past employer will tell you more than you ever would have thought to ask.

Train Your Employees Well and Get Signed Proof

Especially if there are any hazardous areas in your business location, you need to provide adequate training for each and every employee. Once the training has been completed, each employee should sign something showing they have attended the training and know how to avoid injury. This can come in handy at a later date if someone files a workman's comp claim and tries to state you didn't mitigate their risk or properly educate them about it.

Work with Your Commercial Insurance Service Provider on Additional Ways Your Specific Business Can Avoid Fraudulent Claims

Finally, since it is in both your best interest and the best interest of your commercial insurance provider to avoid claims against your policies, make sure you work with your agent on ways you can save money and avoid future claims.