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Take Control of Your Experience Modification Factor – Prompt Claim Reporting

By April 26, 2012August 22nd, 2018

Do you know how much late claim reporting costs your business? The Hartford wrote the definitive study on prompt reporting of Workers’ Compensation claims. They found:

  1. Injuries reported within 2 weeks are 18% more expensive than those reported within 1 week. And it gets progressively worse as time goes by. For example, injuries reported between the 4th and 5th week following an injury are 45% more expensive.
  2. The biggest finding involves back injuries, which as a group are 35% more expensive if not reported within the first week.
  3. Soft tissue strains and sprains are 13% more expensive if not reported within one week; carpal tunnel injuries, in which onset is admittedly difficult to pinpoint, are 11% more expensive with late reporting.

The Flanders Group suggests your organization have a goal of reporting within 3 days of an incident or accident. If complete information is not available, the claim should still be reported so that injury management strategies can be deployed. When an employee calls in sick, make sure they are contacted in case the reason they are out is that they had a work- related injury. The sooner you find out, the more proactive you can be.

Knowing and measuring your “lag time” is an essential cost control measuring stick. Companies with well- managed communication between supervisors and the HR department or function are more likely to report injuries promptly and thoroughly, which helps control your experience mod and, ultimately, your total annual premium cost.

The Flanders Group will assist you in updating your claims reporting process and ensuring that your employees benefit from prompt attention and claims management – which will, in turn, reduce your total long term expenses for Workers’ Compensation insurance.