Insurance fraud costs all of us: the insurance industry, businesses and employees. Business owners can empower themselves against workers comp fraud with advice from the pros.

RELATED: Two recent fraudulent workers comp claims

Ten Steps to Workers Comp Insurance Fraud Prevention

• Acquaint yourself with employee candidates.
  Do plenty of background checking. Verify job history and other necessary information before hiring. Sustain updated records for each worker.
  
  
• Teach employees about job benefits.
  Employees should be well-versed in health, workers comp and state disability insurance benefits. They should also know what to do in the event of an work-related injury.
  
  
• Train managers and supervisors about workers comp and injury claims.
  Make sure company leaders know how to research an injury. An injury should never be disregarded. Any injury complaint should be properly documented and reported to the company
  

• Implement a no-tolerance approach to fraud. 
  Let your workers know any injury will be probed and fraudsters penalized to the full extent.
  
  
• Hold safety conferences.
  Have employees attend regular seminars that help foster work safety.
  

  
  

  
  

  
  

  

  
  
  
• Pay attention to employee grievances.
  Address complaints about unfair dealings or hazardous work settings.
  
  
• Install security cameras.
  This can corroborate a genuine work-related injury as well as sustain filmed proof of an actual occurrence or lack of one.
  
  
• Conduct a review of an injury report.
  Investigate the claim: take pictures of the accident location and go over camera surveillance. Inform the insurance company about any suspicious claim.
  
  
• Demonstrate your concern.
  Show your interest in your worker’s well-being by inquiring about their medical care. Offer assistance and respond to queries about the workers compensation procedure.
  
  
• Have a defensive work departure protocol.
  Make sure there were no injuries acquired while your departing employee was at work. Obtain employee’s signature where he or she declares there were no injuries and knew the process of reporting one if there had been.

For information about insurance or fraud in the workplace, contact Prime Insurance.

PRIME Insurance is a three-generation family-run independent agency. We’re proud to partner with many of the leading underwriters – recognized companies like ACE, AmTRUST, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!

Summary: The insurance companies are urging businesses to be proactive about preventing workers comp fraud.