Security Verification

What to Do With a Fraudulent Workers Comp Claim

What to Do With a Fraudulent Workers Comp ClaimIf you’re dealing with a fraudulent Workers’ Comp claim, it’s best to change to a loss-sensitive program. How do you know when it’s time to change from a guaranteed-cost Workers’ Comp program? It’s based on the market. Keep in mind the importance of protecting yourself with Small Business Workers’ Comp.

According to an article in Staffing Industry Analysts, if you can answer yes to the questions below then it’s time for a change to a more loss-sensitive program.

  1. Do you have a strong risk management program? This means you have an employee that is responsible for administering the handling or your claims and the safety of your customer’s worksites. Make sure to keep your contracts wording in the clear for staffing industry responsibility.
  1. Are you comfortable making a conservative estimate for your losses in the next policy term? A good risk management program will keep unusual claims or situations to an absolute minimum. The best way to know if you’re running an effective Workers’ Comp program is by checking to see how many unusual claims you’re getting.
  1. Are you financially ready to make the change? Studies show that for most light industrial staffing companies, Workers’ Comp costs are the second highest overall cost. Assess whether or not you’re able to take the risk for your insurance program based on your finances.
  1. Do you have better-than-average financial statements that are audited by your CPA? In order to quote a loss sensitive plan, insurers require a review of your financial statements. Internal and consolidated statements are a major factor when considering this plan.

At Associated Specialty Insurance Agency, we work to provide your small business clients with the best solutions for their needs. We’ve built a reputation based on our expertise, creativity, longevity and our longstanding carrier relationship. For more information on how we can help your agency grow and retain, call us today at 610.543.5510.

This entry was posted in blog, small business, Workers Compensation and tagged , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post. Trackbacks are closed, but you can post a comment.