How to Avoid Workers’ Compensation Fraud at Your Pumping Business

How to Avoid Workers’ Compensation Fraud at Your Pumping Business

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Workers’ compensation provides an important safety net for employees and business owners alike. In a nutshell, a good workers’ comp policy ensures that, should an employee ever become injured or ill as a direct result of doing their job, their medical bills and lost wages are properly compensated. Workers’ comp policies are designed to provide for employees who are subject to workplace accidents, without placing too onerous a financial burden on the business itself.

As with any good system, workers’ comp can be abused. Fraudulent claims cost businesses billions of dollars every single year. And while there is probably no way to totally eradicate workers’ comp fraud, there are a few simple strategies your business can follow to minimize these abuses.

1. Establish a safety plan.

One of the most important things you can do to minimize workers’ comp fraud is to prioritize the safety of your employees. Not only will this help you reduce the number of workplace accidents, potentially making fraud cases easier to identify, but it also earns the goodwill and trust of your employees. Create and document a full employee safety plan, including steps to audit workplace hazards, investigate any incidents, and create an employee safety team to seek continuous improvement.

2. Reinforce your safety policies.

There are a number of ways to keep your workplace safety plans top-of-mind among your personnel. Instructive signage and posters go a long way. Include safety guidelines in any employee handbook that you develop. Set company-wide safety goals and reward your employees for meeting those goals.

3. Create a fraud-free culture.

It’s also important to be direct with your employees: Fraud will not be tolerated. In employee handbooks and within all workers’ comp documents, stress your zero-tolerance policy for fraud. Encourage your employees to report any instances of fraud that they become aware of.

4. Be thorough in your hiring practices.

Sound hiring procedures can also help you curb instances of fraud. Always conduct background checks to ensure you’re hiring employees with track records for honesty. Be aware of some of the red flags for workers’ comp violations, which include spotty work histories, lengthy criminal records and previous workers’ comp claims with minimal detail or with no witnesses to corroborate.

5. Consider video surveillance, if possible.

This isn’t always feasible, and there may also be legal limitations to consider, but in some workplaces it may be worth it to ensure that employee activity is documented. That way, you and your insurance provider have the means to review any incidents that are reported.

Taking Fraud Cases Seriously

Fraudulent claims can be incredibly costly, something that not only hurts your business, but also the employees who are honest and play by the rules. If you do have a claim that you suspect of being fraudulent, report it to your insurance carrier as quickly as possible, ensuring that the issue is investigated and resolved sooner rather than later.

About the author: Amanda E. Clark is the president and editor-in-chief of Grammar Chic, a full-service professional writing company. She is a published ghostwriter and editor, and she's currently under contract with literary agencies in Malibu, California and Dublin. Since founding Grammar Chic in 2008, Clark, along with her team of skilled professional writers, has offered expertise to clients in the creative, business and academic fields. The company accepts a wide range of projects; often engages in content and social media marketing; and drafts resumes, press releases, web content, marketing materials and ghostwritten creative pieces. Contact Clark at


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