Some new business owners make the terrible mistake of assuming they will never face claims of workplace injuries solely because their business is too small. However, falls and other mishaps are pretty common in all work scenarios, even those that only employ independent contractors.

Therefore, being prepared to protect yourself and your workers against unfortunate workplace accidents is paramount. You should also know how to combat fraud since some employees may claim insurance fraudulently by falsifying work-related injuries or exaggerating the severity extent.

The following is a quick guide that enables you to understand the critical points of Workers’ compensation, helping you make a good beginning.

It benefits employees and employers

There are extensive reports on fatal occupational injuries and diseases for various reasons. This crucial coverage can help victims get medical care, disability benefits, lost wages, therapy expenses, and other benefits that make it easy for them to recover without worries. However, it is not true that the coverage benefits are solely for the workers of an organization.

In fact, even employers benefit from the coverage as they can protect themselves against lawsuits filed by disgruntled employees. Typically, these are false claims that they have been injured due to the negligence of safety protocols at the workplace.

Therefore, following policy guidelines can protect you from jail time and massive fines in such cases while ensuring you receive coverage for attorney fees, court costs, and similar expenses.

Where to get it

Although state funds supply these policies, many companies opt for private insurers as they can select plans that meet their specific requirements. Invariably, millions of workers are insured each year through both methods, being assured of a safe working environment and provision in case of occupational injuries or diseases.

If you choose to go the private way, you must rely on an experienced industry expert providing premium plants at affordable prices. This way, you can be assured of receiving total value for your money, as payment for the policies is done by employers without requiring any contribution from the workers.

Also, since these companies have extensive knowledge of each state law, they can recommend plans that suit your industry needs and modify them accordingly per your changing business requirements. Some also help with claims settlement, fraud prevention, loss control, return-to-work programs, and managed care services to make the process easier for new business owners.

Protect yourself from fraudulent workers’ compensation claims

Fraud rings can sometimes cheat the system of millions of dollars, causing grief to already injured workers and unsuspecting insurers. Typically, these can be categorized into two types: policy-related and claim-related. The former is when a policyholder under-reports payroll or misclassifies workers to get coverage at lower premiums. The latter is when workers falsely claim injuries or illnesses due to occupational hazards, hoping to siphon money off the insurance money.

Either way, you should learn to combat fraud as it will protect your business from falling prey to such unlawful acts. You can begin by establishing a clear no-tolerance policy on fraudulent claims and encourage employees to report such activities in the workplace. Also, maintain accurate work records, ensuring precise classification of each employee.

Finally

Work only with trustworthy employees and independent contractors and check their work history before hiring them.