Time is money and that’s especially true when it comes to work comp claims. Any delay in reporting is called “lag time” and is measured as the time from the date your employee was injured to one or all of these dates: (1) the date you were notified, (2) the date the injury report was completed, (3) the date the insurance agent or carrier was notified. These extra days postpone important medical treatment which can add to the time it takes an employee to recover and get back to work. If your employee misses work, then add indemnity payments to the cost of the claim.
A study completed by The Hartford found that claims filed a month or more after an injury cost an average of 48% more to settle than those reported in the first week.
They also found:
- 18%: Increase cost of claims reported after 1 week
- 35% : Increase cost of back claims reported after 1 week
- 13% : Increase cost of sprains and strains reported after 1 week
- 47%: Rate of litigation for claims reported after one month.
Do you know if you have delays in your workers comp claim process that are costing you money? If you’re not sure, call The Flanders Group at 800-462-6435. You could be paying more for workers comp than you need to!