Fraudulent workers’ compensation insurance claims can be a nightmare for New York construction businesses. A single phony claim could significantly raise your workers’ compensation premiums, impact your bottom line, and lead to long-term financial stress. For construction firm owners, the key to avoiding these issues is diligence during the hiring process.
This article outlines 10 red flags to watch for when hiring workers to ensure your business stays protected. It also explains how partnering with specialists like BGES Group can help you obtain comprehensive workers’ compensation coverage that safeguards your company.
Why Fraudulent Workers’ Compensation Claims Are a Serious Problem
Fraudulent claims can cost your business thousands of dollars annually. The problem is particularly prevalent in high-risk industries like construction, where injuries are common, making it easier for dishonest workers to file false claims.
For employers, prevention starts with knowing what to look for before hiring. Here are ten critical signs to help you avoid hiring workers who might later commit fraud.
10 Warning Signs to Watch for When Hiring Workers
1. Gaps in Employment History
Workers with unexplained gaps in their employment history may be hiding previous fraudulent activity or frequent disputes with past employers. Always request a complete job history and verify it thoroughly.
2. Frequent Job Changes
Individuals who frequently switch jobs, especially in the construction industry, may be doing so to avoid being caught committing fraud. Verify their reasons for leaving each position with previous employers.
3. Exaggerated Work Experience
Applicants who overstate their qualifications or past responsibilities may lack the skills needed for the job, increasing the likelihood of accidents or fraudulent workers’ comp claims. Ask for certifications and licenses to validate their claims.
4. A History of Filing Claims
During the reference check process, inquire whether the candidate has a history of filing multiple workers’ compensation claims. A pattern of claims could indicate fraudulent intentions.
5. Unverified References
Fake references are a common tactic for fraudulent applicants. Always cross-check references to confirm their validity and the applicant’s prior work history.
6. Vague or Inconsistent Answers
During interviews, watch for inconsistent responses to questions about their work history, skill set, or reasons for leaving prior jobs. These inconsistencies may be red flags for dishonesty.
7. Pressure to Get Hired Quickly
Fraudulent workers often push for quick hiring decisions to avoid background checks. Be wary of applicants who demand immediate offers without allowing time for due diligence.
8. Poor Physical Fitness
Construction jobs are physically demanding. Workers who appear unfit or incapable of handling the physical requirements may be more likely to file phony workers’ compensation claims.
9. Overeagerness to Discuss Benefits
Pay close attention to applicants who ask excessive questions about workers’ compensation insurance coverage, disability benefits, or injury policies. While this could be a legitimate concern, excessive focus on benefits is a potential red flag.
10. Resistance to Background Checks
A worker who resists background or criminal record checks may be hiding fraudulent behavior or a history of false claims. Always insist on performing thorough checks.
How to Protect Your Business from Workers’ Comp Fraud
Beyond identifying red flags during hiring, taking additional preventive measures can help you safeguard your business from fraudulent workers’ comp claims:
1. Document Job Duties Clearly
Provide written job descriptions detailing physical requirements and safety standards. This minimizes disputes over job-related injuries.
2. Conduct Pre-Employment Physicals
Require candidates to undergo a physical examination to ensure they are fit for the job and to document any pre-existing conditions.
3. Train Supervisors to Spot Fraud
Supervisors should be trained to recognize fraudulent behavior and report suspicious claims promptly.
4. Use Surveillance and Safety Tools
Implement safety cameras and equipment to monitor work conditions and provide evidence in case of false injury claims.
5. Work with a Reliable Workers’ Compensation Specialist
Having the right workers’ compensation insurance policy is crucial for protecting your business from fraudulent claims. Specialists like BGES Group can help you secure the best coverage at competitive rates.
How BGES Group Can Help Your Construction Business
BGES Group is a trusted name in workers’ compensation insurance, specializing in providing tailored policies for New York contractors. Whether you’re running a large construction firm or a small contracting business, BGES Group can:
• Help you find policies that include fraud prevention measures.
• Assist in selecting workers’ compensation coverage that aligns with your business needs.
• Provide personalized service to address your unique concerns.
Contact BGES Group Today
Don’t let fraudulent workers’ compensation claims jeopardize your business. Protect your construction firm with the right insurance policy from BGES Group. Call Gary Wallach today at 914-806-5853 or email bgesgroup@gmail.com to learn more.
You can also visit their website at bgesgroup.com to explore their range of services and request a free consultation.
By staying vigilant during hiring and securing comprehensive workers’ comp coverage, you can minimize risks and ensure the long-term success of your construction business. Let BGES Group be your partner in protecting what matters most—your workers, your reputation, and your bottom line.