The beginning of a new year is an ideal time for businesses to step back and review the systems, records, and controls that support safe operations and accurate workers’ compensation coverage. Fraud prevention is not about suspicion—it’s about preparedness. When technology, documentation, and access controls are current and functioning as intended, legitimate claims move faster, investigations are more efficient, and unnecessary costs are reduced for everyone involved.
A recurring review can go a long way toward protecting your employees and your business.
Review Surveillance Systems Before You Need Them
Surveillance cameras can be one of the most impactful tools in workers’ compensation investigations, but only if they are working properly and footage is available when needed. On a quarterly basis, businesses should confirm that all cameras are operational, positioned correctly, and capturing clear images of key areas such as entrances, exits, production floors, parking areas, and relevant zones.
It is equally important to review retention settings. Many systems automatically overwrite footage within days or weeks. If an injury is reported later, critical video may already be gone. Test the process for retrieving and exporting footage to ensure it can be done quickly and in a usable format.
Reassess Access Controls
Employee turnover, promotions, retirements, and contractor changes often occur throughout the year—but system access is not always updated accordingly. Regular access reviews help reduce the risk of unauthorized changes to sensitive information and/or data breaches.
Employers should confirm that former employees and inactive contractors no longer have access to payroll, timekeeping, HR systems, claim reporting tools, or security platforms. Access levels for promoted employees should also be reviewed to ensure they align with current responsibilities. When possible, separating duties, adds another layer of protection by reducing the chance that one individual controls multiple critical processes.
Validate Payroll, Timekeeping, and Job Classifications
Accurate payroll and job classification data are essential to correct workers’ compensation premiums and fair claim handling. Over time, job duties can shift while titles remain the same or pay practices may change without being reflected in records.
A review should include confirming job classifications still match actual work performed, validating overtime and bonus handling, and reviewing independent contractor classifications. Comparing payroll totals and staffing levels against prior-year trends can help identify inconsistencies early, before they become larger issues during audits or claims.
Confirm Document Retention and Storage Practices
Workers’ compensation claims are often reviewed months—or even years—after an incident occurs. Clear, consistent documentation helps establish facts and supports timely claim resolution.
Businesses should review how long they retain key records, including injury reports, safety training documentation, payroll records, timecards, and surveillance footage. Documents should be securely stored, backed up, and protected from unauthorized edits. Ensuring records are organized and searchable can significantly reduce delays when information is requested during a claim review.
Test Incident Reporting Procedures
Delayed or inconsistent injury reporting is one of the most common challenges in workers’ compensation. Each year, employers should walk through their incident reporting process to confirm it still works as intended.
Supervisors should know who to notify, how quickly incidents should be reported, and what documentation is required. Electronic reporting tools, phone numbers, and contact lists should be tested to ensure access has not changed. Prompt and accurate reporting helps claims move efficiently and reduces misunderstandings later.
Refresh Supervisor Training on Documentation
Front-line supervisors play a critical role in documenting workplace incidents. Training refreshers can help ensure documentation remains objective, timely, and consistent.
Supervisors should be reminded to document witness statements, physical observations, and relevant facts without speculation or opinion. Reinforcing expectations around modified duty and return-to-work programs can also help employees recover safely while reducing claim costs. Clear notes written immediately after an incident are far more reliable than recollections made months later.
Designate a Claims Liaison
Having a clear point of contact for workers’ compensation matters streamlines communication when questions arise. Employers should identify a primary and backup contact for claims coordination, document requests, and investigative inquiries.
Timely responses and organized records help resolve claims more quickly and minimize disruptions to daily operations.
Preparedness Protects Everyone
Fraud prevention is not about assuming wrongdoing—it’s about maintaining strong systems and accurate records that support legitimate claims and fair outcomes. A thoughtful annual operational review can help businesses start the year confident that their technology, documentation, and controls are ready if a claim occurs.
Preparedness protects employees, strengthens operations, and helps keep workers’ compensation costs predictable and manageable.
