The severe increase in workers' compensation costs can be attributed to many factors, but the majority of the blame can be traced to a growing number of unethical employees who have learned how the system works. The following are some ideas on how to defend yourself and keep your workers' compensation multiplier as low as possible:
- Document, distribute, and communicate a policy that requires all injuries to be reported to the appropriate management personnel. Send the "First Report of Injury" to the claims department immediately.
- If there is any doubt of whether or not the injury occurred on the job, indicate so on the "First Report of Injury" and ask your insurance company to investigate.
- Thoroughly investigate each claim. Check with field management and others on the jobsite to find witnesses. Get documentation from all available witnesses.
- When you hire a new worker, perform a background check. There are many companies who will find information on a worker's previous employment history, past credit history, driving record, arrest record, and previous workers' compensation claims.