Some industry experts estimate that workers comp claims may increase as much as 50 percent during layoffs or business restructuring. This is because some employees may look to workers compensation as a way to ensure their income is sustained when they no longer have a job due to a layoff, termination or other situations they can t control. Even if layoffs aren t in the plans, rumors of job restructuring are enough to scare some employees into believing layoffs are imminent. Most claims filed after employment ends do not involve fraud. Some employees who were reluctant to file a claim because of fear or inconvenience decide to file once their employment ends.
Close attention makes it harder for abusive or fraudulent claims to slip through the cracks.
Also, by letting your carrier know about downsizing plans beforehand, together you can develop strategies for warding off any abusive claims. Utilize Accident Reporting Procedures. Create an accident reporting policy that requires all employees to report accidents immediately, no matter how minor. Even if an employee does not report the accident in what you consider to be a timely manner, it must be reported immediately upon your knowledge to investigate and meet certain deadlines concerning payment of benefits. Obtain Signed Verification Forms .