Morse and Cremona,Inc.,has hired a private investigator to follow an employee who has filed a workers' compensation claim for a disabling back injury.What legitimate reason would Morse and Cremona have to consider the expense of the private investigator cost-beneficial?
A) The company wants to discredit the employee's claim so that it is not vulnerable to OSHA fines for unsafe workplace conditions.
B) False workers' compensation claims increase the company's premiums.
C) The employee may intend to sue the company for negligence.
D) The employer does not want to pay a valid workers' compensation claim.

Question

Quizplus · Accepted Answer

False workers' compensation claims increase the company's premiums, so investigating a claim helps to determine its validity and prevent fraudulent claims. This cost-benefit analysis ensures that the company is not paying higher premiums due to illegitimate claims. Option A may not be a valid reason as the investigation would not necessarily protect the company from OSHA fines. Option C is a hypothetical reason and not a concrete benefit, and Option D is not a legitimate reason for carrying out the investigation.