A study by the National Council of Compensation Insurance (NCCI) confirms what experienced workers’ compensation experts have been saying for years — delayed reporting of workers’ comp claims will cost you. Specifically, the report said that the late reporting of claims: 1) costs employers more in dollars, increasing the loss ratio of business entities, 2) increases their experience modifications, and 3) ultimately has a negative effect on workers compensation premiums, regardless of the insuring company.
Reviewing claims that were reported more than two weeks after the initial injury, increased the cost of the claim by 35 percent. For example, a claim that was reported within two weeks ultimately cost about $13,500. The same type of claim — delayed by just one week — increased in cost to $17,785, or more than one third higher.
The NCCI found that this trend was apparent in the four most common types of claims: sprains/strains, fractures, contusions, and lacerations. The researchers excluded claims for occupational diseases and cumulative trauma, which are complicated by the difficulty of identifying the actual accident date. Fatal and permanent total claims were also excluded. So a business can have a significant impact on the cost of its workers’ compensation claims by training its staff to report claims as soon as they occur. This can help minimize the cost of the claim thereby reducing the experience modifications and the workers comp premium for the business.
Western Growers Insurance Services can assist members with training their managers, supervisors and employees on the process for handling workers compensation claims and assist the business in finding the best workers compensation provider for its business. For more questions, contact Greg Nelson at (949) 885-2287.