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Take the Appropriate Precautions to Avoid Workers Compensation Fraud

Workers compensation insurance is a must for all business owners despite the nature of their operations. If employees get hurt on the job, companies can be held accountable monetarily. Businesses must also protect against fraudulent claims perpetrated by those trying to game the system.

According to the California Department of Insurance, fraud occurs in simple and complex schemes that can require lengthy investigations to sort out. White collar criminals, such as doctors and lawyers, can also collude with employees to perpetrate frauds. This makes it important to have directive controls, such as written policies and procedures, instructing employees on how to keep their workplace safe and how to report accidents.

Workers compensation fraud can cost businesses thousands of dollars. For this reason, fraud prevention programs and controls are critical to protecting a company’s on-going operations. Reliable insurance companies can help protect their clients from fraudulent claims. There is no reason to let fraudsters get away with bilking the system.

For more information about workers compensation insurance and commercial insurance in California, please contact Michelle Lim Insurance Services Insurance, located in Alhambra. 

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