Preventing workers' comp fraud

The National Insurance Crime Bureau estimates that workers' comp fraud is the fastest-growing insurance scam in the nation. These incidences can range anywhere from an employee feigning a back problem only to be seen lifting heavy items into a delivery van for his home-based courier business to an employee passing off an injury from a weekend softball game as a workplace injury Monday morning.

And since fraudulent claims can add up quickly, you'll want to take precautions to try to combat fake claims. According to the Coalition Against Insurance Fraud, these are a few steps you can take to protect your business:

• Verify references and background information carefully.
• Publicize your workers' compensation policy to all your employees, and provide them with updates at least once a year.
• Educate supervisors on workers' comp issues: How injuries decrease productivity and how costs affect the bottom line.
• Display fraud awareness posters and the National Insurance Crime Bureau's hotline number.
• Work with your insurer to implement a safety-management program that can eliminate as many safety problems as possible.
• If you suspect a fraudulent claim - and you have evidence or witnesses to back up your suspicion - contact your insurer's special investigation crimes unit immediately.
• Pay attention to employee complaints and concerns about their working conditions. The strongest predictor of fraud is a chronically disgruntled work force.