Employees can have a misconception that workers’ compensation fraud is not a big deal. But, it’s a felony.
How can you shift your company culture and employee mindset to reduce your insurance premiums and workers’ compensation costs? Combat fraud with training.
A self-insured company brought in an SIU director, (a colleague and client of ours), to help with their out-of-control claim costs. The SIU director implemented a nationwide anti-fraud training program that focused on safety and fraud prevention.
Since then, the number of employees for this company grew by 88%, yet claims costs went down by 95% and claims were reduced by 34%. This was accomplished by a company with high risk employees in food service, security, and janitorial occupations.
The proof is in the pudding. Experts in the risk management industry agree that providing anti-fraud and comprehensive safety training to self-insured companies has consistently proven to reduce claims and reduce workers’ compensation costs.
Once a suspicious claim is filed, you are going to spend money. Training as a prevention tool is a great way for you to keep fraudulent claims from being filed or abused in the first place.
A comprehensive safety program informs your entire staff the laws and repercussions of fraudulent activity. Training gives them the tools to identify and report perpetrators before it is too late. Awareness and preparation are the best deterrents of fraud.
Saving money starts with the awareness of one employee. This awareness redirects their ambitions from personal benefit to company success.
Make sure their understanding of fraud is clear and that they know how to properly report any suspicious activity. Explain to them how a co-worker, who may be out of work, costs the company and themselves more money and time in the long run.
Train upper level management so they know what is going on with their employees and can quickly mitigate losses. Make sure supervisors are proactive and thorough if they suspect fraud.
Standard of Performance
When employees know that their colleagues and supervisors are vigilant, they’ll be more inclined to work efficiently. With awareness, the employee’s interest will steer towards the productivity and welfare of the company. This mentality within the workforce will reduce fraud significantly.
Re-Create Company Culture
Instill in your employees that fraud will not be tolerated. Your employees need to know that fraud is illegal and that it increases the company’s insurance premiums, which negatively affects every employee.
Pay-n-Chase Costs More
Sometimes, it may seem easier to pay for the claim. We know, there is often so much on our plate that adding another task and expense seems unfathomable. But, pursuing a suspicious claim costs much more than preventing one.
Invest in a training program and appreciate the dramatic reduction in your claims cost and case volume. According to the Association of Certified Fraud Examiners, the approximate loss of money by businesses to fraud amounts to $3.5 trillion dollars per year. Investments like comprehensive safety training are simple fixes to the daunting price of fraud.
For more information of SIU training, or if you’d like a consultation about how our Special Investigations unit (SIU) can benefit your company, check out our SIU page.