What is workmen's comp insurance?

Workmen's Comp Insurance is a type of insurance required by each state (some exceptions are made) to cover the employer when a worker is injured on the job. Some of the earliest workmen's comp insurance requirements became a reality in the early 1800's. Before this employees received no help when injured while working and often sued the company winning damages that could put the employer out of business. This type of insurance is paid for wholly by the company.... an employee is never required to contribute.

Every state has different requirements for Workmen's Comp insurance. The easiest way to get this insurance while staying on top of state requirements is to partner with a Professional Employer Organization (PEO). To find the perfect PEO visit http://www.PEO-Quote.com

Early Intervention Key to Reducing Workers' Comp Costs

Fairfax, Va. - The Public Entity Risk Institute (PERI), a Fairfax, Va., nonprofit risk management training and educational organization, has released a resource guide for controlling workers' compensations costs that focuses on using telephonic nurse injury reporting and triage as important early intervention.

The PERI Day of Injury Resource Manual outlines an effective strategy lays out a proactive approach for addressing rising costs of workers' compensation by establishing processes for responding to employee injuries starting right on the day of injury, says Gerard J. Hoetmer, executive director of PERI. "Our research presents compelling evidence that employer actions on the day of injury have a profound impact on the overall cost of workers' comp claims."

The PERI Day of Injury Resource Manual builds on the findings of a study PERI jointly sponsored with the Schools Insurance Authority (SIA), a joint powers authority based in Sacramento, California.

In partnership with SIA, the PERI Day of Injury study assessed the relationship between employer actions on the day an employee was injured and workers' compensation costs. The study focused on injury reporting, directing medical care, and early return to work initiatives. A major component of the research focused on SIA's use of telephonic nurse injury reporting/triage. The study demonstrated that the nature, duration, cost and eventual outcome of a claim can be largely shaped and controlled by the employer's response on the day of injury.

Based on the study, the manual details injury-reporting processes for organizations to put in place as part of an overall early intervention strategy. This how-to manual also highlights best practices for building a structured return-to-work program and provides organizations with sample forms, checklists, and training materials.

For more information go to www.riskinstitute.org.

http://www.insurancenetworking.com/protected/article.cfm?articleId=4416

Chatsworth, Calif. CEO and Wife Arrested for Alleged Workers'

Insurance Journal Online

Three suspects in connection with a workers' compensation premium fraud investigation conducted by the California Department of Insurance (CDI), Fraud Division have been arrested.

A felony complaint was issued by the Los Angeles County District Attorney's Office charging Gad Leshem, 59, with four counts of premium fraud and one count of conspiracy. A felony complaint was also filed against Zeev Golan, 54, and Irit Golan, 52, charging both with four counts each of premium fraud and one count of conspiracy. Bail for each of the defendants has been set at $6.5 million dollars. If convicted, each of the defendants could be sentenced to a $50,000 fine or double the amount of the fraud and up to five years in state prison.

Gad Leshem is the president/CEO of Cover-All Inc., a flooring and carpet installation company headquartered in Chatsworth, Calif. Zeev Golan is the vice president and his wife, Irit Golan is employed as the executive secretary and payroll supervisor.

According to CDI, Cover-All obtained a workers' compensation policy State Compensation Insurance Fund (SCIF) on Sept. 1, 2001. SCIF conducts routine audits of policy holders as part of its normal procedures. The audits revealed that the payroll reported to SCIF was significantly lower than that reported to the Employment Development Department (EDD). As a result, SCIF referred the case to the CDI Fraud Division.

During the course of the investigation, it was learned that Zeev and Irit Golan were responsible for preparing the alleged fraudulent monthly payroll reports provided to SCIF. The monthly payroll reports were reviewed and approved by President Gad Leshem. Leshem and Zeev Golan also provided the alleged fraudulent payroll documents that were provided to SCIF during the routine audits. The investigation conducted by the CDI, Fraud Division determined that from Sept. 1, 2001 to April 16, 2005, Cover-All. underreported payroll of $26,937,575 to SCIF. This underreported payroll resulted in a premium loss of $7,565,009, CDI said. SCIF also assisted in the investigation.

http://www.insurancejournal.com/news/west/2006/10/24/73513.htm