Every state battles fraud and abuse of its Workers Compensation system. Even though you use Worker Comp to protect your employees and keep your premises safe, you might well end up paying higher premiums because other firms, employees, and medical providers have no compunction about cheating the system through fraud and abuse.
Workers Comp fraud involves such criminal acts as workers falsifying claims, employers misclassifying high-risk workers with less dangerous jobs to lower their premiums, and physicians exaggerating injuries and their treatment and overbilling insurance companies for expensive services never rendered. Fraud has led a number of states to pass legislation simplifying the prosecution of offenders. On the judicial front, some states provide insurance companies with immunity from lawsuits if they report Workers Comp violators. On the downside, insurers need to tread cautiously because a firm wrongfully accused of fraud has legal recourse after a false report or misleading statement.
Unlike fraud, Workers Comp abuse isn’t a felony, although it also increases premiums for everybody. Usually, this misuse of benefits involves a worker who uses unnecessary medical services, remains away from work after their injury has healed, or reports an off-hours injury as happening on the job.
According to a recent Insurance Research Council survey, more than one in four workers (28%) believe that padding Comp claims is justified to recover the policy premium, which they aren’t even responsible for paying! Insurance companies have trouble detecting this common abuse, especially when they’re up against a stress or soft-tissue injury, because there are few if any physical symptoms. This attitude among workers might be an extension of the belief that claims-padding on policyholders’ Personal insurance coverages (Auto or Homeowners) is simply a way of getting their money’s worth from their premium.
As a business owner or manager, you can help curb Workers Comp fraud and abuse and keep your premiums under control by:
- Screening out potential abuses when you recruit employees and assign jobs.
- Developing close, mutually respectful relationships with your workers to minimize any grudges against management that might encourage abuse.
- Keeping close tabs on potential abuses of the system.
We’d be happy to work with you in reaching these goals. Contact any of our helpful and friendly agents at Scurich Insurance Services with your questions regarding Worker’s Compensation. Connect with us on Facebook to learn more about us and stay informed regarding all insurance related topics.
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Examples abound of workers offering their skills outside the workplace: Nurses and doctors aid the injured or ill; contractors assist someone with heavy lifting or short hauling while on a hardware run; benevolent computer techies make a quick fix for a customer without a dispatch order. If one of your employees suffers an injury while providing such help, can the employee collect under Workers Comp? After all, they were doing their work.
A California correctional officer, injured while helping at the scene of an accident on his way to work, was denied Workers Comp benefits on the basis that his services did not qualify as regular employment. Citing an ethical standard set forth for correctional workers in the Ethics Cadet Workbook, the injured officer claimed it was his ethical duty as a corrections officer to assist those in need, regardless of when or where. Hence, he argued that his services at the accident were related directly to his employment.
However, the court disagreed, stating that: “The fact that the law enforcement code of ethics for correctional officers speaks of a duty to serve humankind and safeguard lives and property does not confer authority on a correctional officer to act outside the scope of his statutory jurisdiction.”
Knowing the eligibility rules for Workers Comp benefits is essential for you and your employees alike. Now might be the time for a refresher course. For more information about your Comp coverage rules, call our service team today.
Contact any of the helpful and Friendly agents at Scurich Insurance Services with any questions regarding your Worker’s Compensation Policy with us.
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| Watsonville, CA 95077-1170 |
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Although most people think of business places as safe and serene, in fact they’re rife with risks, both inside and outside the building. Security experts recommend taking these safety precautions:
- Parking Lot Security/Lighting. Because crime flourishes in the dark, implement a “buddy system” to ferry workers to and from their cars. Limit parking lot access to controlled points and have the lots as well lit as possible. In fact, light is such a deterrent to crime that it’s wise to keep your entire facility lit, inside and out, during non-business hours.
- Entrance Area Safety. Make sure a receptionist is on duty at all times. Provide a registration system for all visitors (even if they wear the uniform of contract cleaning or other service personnel). Have all doors, windows, and locks checked frequently for proper operation. Use badge or other photo ID systems, with frequent checks of entry code systems. Never let employees prop open a door with a chair so that it doesn’t lock behind them outside on a break.
- Suspicious Activity. Urge employees to report any suspicious persons or activity around the building. Never allow employees to open suspicious packages. Instead, report them to the authorities for proper search and disposal.
- Information Safety. Unfortunately, it’s increasingly easy for computer hackers or disgruntled employees to steal your organization’s vital business information. To guard against this threat, use the latest security software for your entire system, updated frequently, and make sure to have regular backups for this information. Shred paper documents with critical information as soon as they’re no longer needed.
- Equipment Security. Keep an inventory of all your critical equipment, hardware, and software. This is especially important as electronic devices keep shrinking in size, making them easier to conceal and remove. Having an inventory (many experts suggest taking photos of important items) will also make it easier for your insurance carrier to process any claim if anything “goes missing.”
- Employee Valuables. Provide secure places, such as lockable drawers and closets, for employee property and encourage their use. Valuables, especially any item that reveals personal information, should be locked away during company gatherings or breaks.
- Safety Team. Set up a group of managers and employees who meet regularly with a set agenda.
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Each state has its own workers’ compensation laws to handle claims from employees who are injured on the job. These laws are strict liability – fault and negligence by the employer are not considered in order to collect benefits. Punitive damages are not available to the employee.
The legal defenses available in a civil action such as comparative negligence and assumption of the risk are not available to the employer in workers’ compensation.
However, the injury or illness has to be incurred in the course of employment in order for the workers’ compensation system to provide benefits to the injured worker. Workers’ compensation is generally the exclusive remedy for an employee’s injuries or illnesses arising out of the course of employment.
It is typically required by the state for every employee – although state law may provide for specific exemptions for officers/owners, small companies (those with three/four/five or fewer employees), domestic workers, farm hands, and independent contractors.
Fill out the form below and one of the helpful and friendly agents at Scurich Insurance Services will contact you to answer any questions you may have regarding your workers compensation policy.
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Each state has its own workers’ compensation laws to handle claims from employees who are injured on the job. These laws are strict liability – fault and negligence by the employer are not considered in order to collect benefits. Punitive damages are not available to the employee. The legal defenses available in a civil action such as comparative negligence and assumption of the risk are not available to the employer in workers’ compensation.
However, the injury or illness has to be incurred in the course of employment in order for the workers’ compensation system to provide benefits to the injured worker. Workers’ compensation is generally the exclusive remedy for an employee’s injuries or illnesses arising out of the course of employment. It is typically required by the state for every employee – although state law may provide for specific exemptions for officers/owners, small companies (those with three/four/five or fewer employees), domestic workers, farm hands, and independent contractors.
Fill out the form below and one of our helpful and friendly agents at Scurich Insurance Services will contact you to answer any of your questions about your worker’s compensation insurance policy!
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CSPs gain certification from the Board of Certified Safety Professionals, which is commonly referred to as the BCSP. The Council of Engineering and Scientific Specialty Boards and the National Commission for Certifying Agencies are responsible for accrediting Certified Safety Professionals in the United States. The ISO/IEC is responsible for international accreditation. To become a CSP, an individual must have a bachelor’s degree in any field or an associate’s degree in health and safety. They must also satisfy the following requirements:
- Pass the Comprehensive Practice and Safety Fundamentals exams.
- Provide the BCSP with proof of maintaining competency by re-certifying every five years.
- Have at least four years of professional safety experience.
Why Companies Should Hire CSPs. Companies that hire CSPs enjoy an enhanced reputation. CSP certification is one of the most coveted credentials in the United States today. Having an individual who is certified in environmental positions, health and safety is an asset. Employers in many fields seek these professionals. They work with not-for-profit organizations, government agencies, businesses, various industries and consulting firms. In addition to this, many lawyers have started using CSPs as expert witnesses in trials where expert testimonies in health and safety are required. They have been involved in cases with OSHA citations, Workers Compensation, injury lawsuits and several other types of court proceedings. Many government and private agencies require CSPs in their contracts for assurance of experience and knowledge.
Employer Benefits of Hiring a CSP. Employers enjoy many benefits from hiring a CSP. The following are some of the most desirable advantages:
- The company name is associated with a prestigious global certification.
- An individual is identified as a source of expertise by extensive examination.
- Company relations with environmental, health and safety communities are improved.
- Enhances company reputation by keeping an individual certified in safety, health and environmental positions on staff.
- Establishes an examination basis for assessment of employee competency.
- Offers easy access to current information on applicable laws, regulations, consensus standards and licenses.
- Demonstration to other parties that certificate holders have been tested and deemed competent under the highest standards.
- Recognition of the highest level of professionalism in certified health, safety and environmental executives.
- Standards of practice for certification maintenance exemplify enhanced professional credibility.
EPA and OSHA standards show recognition of CSP certification in regulations, standards and laws. Many local and state government contracts require CSP services. These professionals continue to grow in value through government, public and employer recognition. They also continue growing in value because of the national accreditation benefit and the high standards they must abide by.
Contact Scurich Insurance today about your Business and Construction Insurance Policy!
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