What Your Childhood Can Teach You About Workers' Comp Claims
3 Reasons to Promptly Report Workers' Comp Claims
Think about when you were younger – playing outside, riding bikes, climbing jungle gyms and suddenly, you’ve fallen and hurt yourself. Would you wait 7 days before telling your parent or guardian about what happened? Or would you tell them immediately so they could grab that first aid kit and help soothe the pain?
Naturally, when something like this happens we bring attention to it asap. The same idea should be applied to workers’ compensation claims, especially in the not for profit industry.
It’s no secret that the rising cost of claims presents a significant challenge for not for profit organizations. However, there’s a simple strategy that can significantly reduce your claims costs: report all claims promptly.
In fact, the sooner a workers’ comp claim is reported, the lower the cost is likely to be. And when costs are lower, more money stays in the pockets of your organization. Not only do you save money, but beyond cost, reporting claims promptly can ensure a proper investigation, preserve staff morale and maintain compliance.
Here are 3 reasons why you should report workers’ compensation claims immediately:
1. Minimize Cost
Delayed reporting of claims can add up to unnecessary costs for not for profit organizations. Studies show that the longer it takes to report a claim, the higher the cost tends to be. For example, the National Council on Compensation Insurance (NCCI) conducted a survey and found that claims costs began to climb significantly after a lag time of just seven days. A reporting lag of 29 days or more after the incident resulted in costs that were 49 percent higher than costs of claims reported within a week.
In addition, by promptly reporting workers’ comp claims, day-to-day operations will be able to return to business as usual much faster.
It’s also important to know your policy, some have reporting requirements, so it’s possible that a late claim could void your coverage altogether (yikes!). When your organization delays reporting a claim, the investigation can be much less conclusive due to faded memories and unpreserved evidence.
2. Preserve Organization Morale
The severity of an incident can be upsetting for staff and volunteers. To show you care for them, it’s important to report the incident right away.
3. Maintain Compliance
Also, there are certain types of incidents that need to be reported not only to the insurer but also to OSHA. When a recordable work-related illness or injury occurs, the employer has seven calendar days to record it on their OSHA log. Reporting it as soon as possible will help to keep you on track.
Just as you wouldn’t allow a scrape, cut or burn to sit for more than 7 days without any remedy, don’t allow your WC claims to go unreported. The sooner you report, the lower your costs can be and you can continue to minimize risk for your not for profit organization.
Contact the ‘A’ Team for more information on workers’ compensation and claims management for not for profit organizations.
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