Did you know that the sooner a workers’ compensation claim is reported, the less you will have to pay for it as an employer? There are several important reasons why reporting claims quickly can help keep your workers’ compensation costs down. The employee is less likely to sue, the injury will cost less to treat if attended to immediately, you don’t have to worry about being fined for non-compliance, and it helps maintain a good relationship with the insurance company.
Time = Drastic Effects on Cost to the Employer
Did you know that that the longer it takes to report a claim, cost to employers are proportionately higher? The National Council on Compensation Insurance (NCCI) found that after 7 days, the cost of workers’ compensation claims are significantly higher. Furthermore failing to report a WC claim for 29 days or more after the incident resulted in costs as much as 49 percent higher than those of claims reported within a week of the injury.
Your company can also save money by reporting a claim immediately because you can return to business as usual sooner, and the money lost because of decreased productivity will be less. The employee’s problem will be taken care of sooner, freeing up resources to do other things. Also, if the employee receives treatment sooner, they will be able to return to work sooner. If they are not able to return to work, the employer will be aware of this sooner as well and be able to make other accommodations.
This article is part of a series about how to lower workers compensation costs. Learn More: 5 Steps to Reducing Your Workers’ Comp Costs
Quick Action Raises Morale and Prevents Lawsuits
Employees can become really upset by certain types of incidents. When something happens, an emotional employee can blame the company for the problem and other employees may join in. To contain the damage as much as possible, it is really important for your company to show how seriously you take the situation and that you care about your employees.
Quickly reporting any type of workers’ compensation claim can go a long way toward preserving employee morale and trust in your company.
Maintaining a Good Relationship with the Insurance Company
Many insurance policies have reporting requirements. If you wait too long to report the incident, your insurance company may void your coverage altogether. It is also more difficult for a claims adjuster to deal with an incident that was not reported quickly. If it is difficult for the adjuster to work on the claim, it less likely that your company will receive the most advantageous outcome.
The insurer must be able to conduct a thorough investigation as soon as possible after the incident. When reporting is delayed, people may not remember exactly what happened and evidence may not be preserved properly. Your outcome could suffer because of an inconclusive report and your future rates could be affected by it.
Fast Claims Reporting is Required by OSHA
Some incidents not only need to be reported to the insurer, but also to the Occupational Safety and Health Administration (OSHA). The employer has seven days to record it on their OSHA log, Form 300. Non-compliance can result in fines and a bad record.
Contact ERM Insurance Brokers if you have any questions about reporting claims. We are always here to help you. (949) 222-0444