The following was conducted by the Hartford and published in their June 2010 Hartford Financial Services Group, Inc. Newsletter
Reporting Delays Increase Loss Costs
A Hartford study shows a strong correlation between
the speed with which a workers’ compensation injury
is reported and the cost of the claim. Timely reporting
allows us to begin managing the claim and its costs
earlier. By quickly guiding injured workers to appropriate
medical care, we decrease their frustration
and minimize the chances of litigation. The Hartford’s
data clearly demonstrates that “lag time” (the time
between injury and first report) significantly affects
a claim’s outcome.
• Loss costs for Claims reported within one week are
8% higher than those reported on the incident day.
• Loss costs for Claims reported after one month are
37% higher than those reported on the incident day.
The data also shows a significant link between lag
time and the likelihood a claim will be litigated.
Claims reported after one month are three times
more likely to be litigated than claims reported on
the day of an incident.
Finally, delayed reporting of workers’ compensation
claims can result in penalties levied by the state
insurance departments. These penalties can add up
quickly and have a significant impact on an insured’s
premium. In some cases, the penalties may be
charged directly to the insured.
Reporting claims as quickly as possible can help
lower loss costs, reduce fees, and ensure that injured
workers receive appropriate and timely medical care.
We encourage you and your clients to report claims
promptly through one of the options listed below.