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Preventing New Jersey Workers’ Compensation Fraud – Part 2

Preventing New Jersey Workers’ Compensation Fraud – Part 2Preventing New Jersey Workers’ Compensation Fraud – Part 2

In part 1 of this post, we explored the red flags that business owners and insurance agents alike should watch out for when it comes to New Jersey Workers’ Compensation Fraud. Workers’ Comp fraud is one of the most financially damaging forms of employee dishonesty that can affect a business. For this reason, it’s important that your clients know what to watch out for, and how to potentially prevent New Jersey Workers’ Compensation Fraud from affecting them. Below are just a few things your clients can do to potentially prevent fraud.

Talk to employees about Workers’ Comp. There are many misconceptions about this coverage and about New Jersey Workers’ Compensation Fraud. Using posters and employee newsletters to announce Workers’ Comp Fraud as a serious crime, and explaining what Workers’ Comp coverage entails could help make show employees how aware their bosses are, and ideally not attempt fraud.

Always run background checks on new employees. Employers are often surprised to find past phony New Jersey Workers’ Comp claims or other types of fraudulent acts. If an employer does have a question about anything they find in a background check, they should ask the prospective employee to explain.

Have a secure plan in place for worker injuries. Delegate a safety manager for your business. This could be per department if you are a large company. In addition, promptly recommend your predetermined medical provider, get a description of the accident and injury, and report the injury right away to your administrator.

Have a return-to-work program in place. Preparing a written document that all employees sign showing what temporary or alternative duties they may take over in the even that they are injured on the job.

These are just a few ways that your clients may be able to prevent New Jersey Workers’ Compensation Fraud. These are also important factors for insurance agents and brokers to keep in mind, since they can also be victims of this type of fraud.

At the Associated Specialty Insurance Agency, Inc. (ASIA), we understand that New Jersey Workers’ Compensation Insurance is a front-and-center issue for employers, the insurance distribution system, Workers’ Compensation boards, and state legislatures. Insurance agents and brokers with access to competitive markets will not only capitalize on the ability to secure coverage for their clients, but they can also now leverage an improving economy set to spur the Workers’ Compensation industry with an increase in jobs and payroll exposure. Please contact us at (866) 679-7457 today to learn more about our Workers’ Compensation solutions for a wide variety of Targeted Industries.

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