Pub. 1 2021 Issue 3

32 | The Show-Me Banker Magazine ONE POWERFUL SOLUTION. Country Banker’s all -in-one software is customizable, intuitive and delivers effortless in-depth analysis. Get immediate access to reports, including: ■ Trends and Ratios ■ Collateral Analysis ■ Risk Based Pricing ■ Credit Risk Rating ■ Projected Cash Flows ■ Shocks & Sensitivity ■ Loan Presentations ■ Global Analysis ■ Proforma Financials T o learn more , contact us to schedule an interactive demonstration . www.countrybanker.com 800-780-5479 sales@countrybanker.com Robust Software for Ag, Commercial and Consumer Loan Analysis Jim Ford VP, Risk Management TIG Advisors 573-875-4800 jford@tigadvisors.com. Unfortunately, employers may take advantage of this arrangement by falsely claiming that they have implemented such programs, even though it’s untrue. Employers may also claim that their programs possess added elements or are more robust than they are in reality (e.g., claiming that weekly toolbox talks take place when they actually only occur once every quarter) in an effort to obtain cost savings. 4. Neglecting to secure a workers’ compensation policy Despite workers’ compensation insurance being required in nearly every state, employers may attempt to cut costs by not purchasing any coverage whatsoever. Employers who lack workers’ compensation insurance typically hide this information fromothers— including their organizational stakeholders and shareholders. In order to convince others that they have insurance, employers may develop fraudulent documentation (e.g., a fake policy) as “proof of coverage.” But in the event that any claims occur, such nonexistent insurance will quickly become apparent. Consequences of Employer Fraud Employers who engage in workers’ compensation insurance fraud can face severe consequences —both from a legal perspective and from a financial standpoint. First, it’s important to note that insurance fraud is illegal. With this in mind, employers who are found guilty of committing fraud could be subject to hefty fines, serious civil penalties, court injunctions, criminal charges, and— in severe cases — jail time. Second, employers who engage in fraudulent methods to cut premium costs will likely end up experiencing further financial hardship during the claims process. After all, misrepresented employees and false payroll information can lead to the development of inadequate coverage levels, resulting in underinsurance concerns when employees become ill or injured. In these instances, employers could be left financially devastated by a claim and unable to support their employees’ treatment needs or provide necessary benefits —making recovery increasingly difficult. Lastly, employers who are found guilty of committing fraud will likely experience serious reputational damages. Employers’ current workers’ compensation insurance carriers (if applicable) may cancel or drop their coverage in response to fraud. When employers with previous records of fraud attempt to secure insurance in the future, carriers may be apprehensive of providing coverage. As a result, carriers may neglect to offer coverage or charge significantly higher premium rates. Overall, it’s clear that participating in workers’ compensation fraud isn’t worth the severe ramifications that can accompany such an act. By maintaining honest workers’ compensation programs, employers can effectively protect and support their ill or injured employees. Contact us today for additional workers’ compensation resources. ■ Continued from page 31