Delayed Reporting Can Increase Work Comp Claim Costs

May 31, 2016:

Did you know that failure to report a work comp claim promptly can result in the claim cost increasing by over 50% according to a 2015 NCCI study? This study also shows that claims reported the day of an accident involve litigation only 12.8% of the time as opposed to 31.7% of the time for claims submitted four weeks or later. This data demonstrates the importance of reporting and investigating workplace injuries promptly.

There are a number of reasons why delayed reporting causes work comp claim cost to dramatically increase. One main reason, as mentioned above, is that delayed reporting translates into the involvement of attorneys. The cost of litigating claims can be substantial and is one of the main factors driving work comp claim costs up. The delay in investigating and gathering evidence results in missing, inaccurate or incomplete details surrounding the incident. Witnesses are much less likely to accurately remember events the longer it takes to interviewing them. This can also lead to conflicting versions of the incident. All of this traditionally leads to the involvement of attorneys.

To avoid costly litigation surrounding workplace injuries, it is a recommended practice to have a policy requiring all employees to report any accident. Even if they have no intention of making a claim, it is still a best practice to report all incidents. This will allow for the details of the event to be properly recorded, any evidence collected and all witnesses promptly interviewed. The incident should be reported, investigated and documented within 24 to 48 hours maximum to ensure an accurate account of the event, otherwise details can be quickly lost. On a more proactive level, the use of emerging technologies and software like Consumer Health Connections telehealth platform, claims are now able to be reported and recorded in real time.

Workers Compensation claims can cause dramatic increases in your insurance costs. Keeping your claim costs as low as possible by educating yourself and your employees about proper reporting procedures is the best way to keep your premiums in check.

If you would like to talk more about your business’ Workers Compensation insurance needs or emerging technology options, please feel free to contact me and I will be happy to assist any way I can.

Mike Allen Signature

2016-02-19_15-00-13 2016-02-19_15-02-26

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