workers-compensation-forms.bmp

December 2022

Why Businesses Shouldn't

Delay Filing Workers' Comp Claims

    Go over the three reasons why claims shouldn't be postponed and the consequences of doing so.

    workers-compensation-forms.bmp

    Credit::Crain's Chicago

    It's crucial for a company to report an event as quickly as it can when an employee is hurt or falls unwell while working. It is true that an employer's tardiness in submitting a workers' compensation claim can result in both increased costs for the company and resentment among employees.


    Generally speaking, companies are required to give an injured worker a claim form within 24 hours of receiving notification of an on-the-job injury or work-related sickness.


    The top three reasons why your client business owners should never put off submitting a workers' compensation claim are as follows:

    1. Reporting delays can complicate the claim process and postpone medical care, which increases claim costs and delays.
    The amount of days that pass between the time an accident happens (the accident date) and the time the insurer is notified of the event is known as the report lag (report date).


    The National Council on Compensation Insurance asserts that it will take longer to provide employees with the treatment they require the longer there is a delay in registering a claim. Delays in filing claims may also obstruct the inquiry. Both of these problems can lead to claims staying open longer than required, which raises the possibility that the company will be the target of a lawsuit.


    Did you realize? The normal rise in the median cost of claims reported in weeks one and two is roughly 25%. The cost of a claim rises to 35% in week three and another 12% in week four.


    2. Failure to disclose claims on time may result in higher insurance premium rates.
    Because experience modification rating (EMR) is a factor in determining workers' compensation insurance rates, an employer's loss history will have an impact on how much the company will pay for insurance. As previously indicated, any delays in filing a workers' compensation claim can increase the severity and cost of the claim, which can raise insurance premiums.


    A claim reporting system should be established for all managers, supervisors, and workers, making it obvious that when an injury happens, it should be reported right away. Additionally, once a claim is open, businesses must continue to manage it actively to guarantee that it is being processed properly. Determine the origin of injuries and how to stop them from happening again so they don't further affect the EMR of the organization.


    3. Reporting delays could cause a company to break the law, incur expensive fines and penalties, or even face criminal prosecution.
    The workers' compensation system in each state is unique and has its own set of procedural requirements that companies must follow. If they are not followed, the company can break the law. Employers should check the Occupational Safety and Health Administration's reporting requirements as well as inquire about local legislation from their state's department of industrial relations or workers' compensation division.


    If the company does not offer workers' compensation insurance, an injured employee may bring a civil lawsuit against the company. Some states now have monies set aside particularly to assist wounded workers who want to sue uninsured businesses.


    Only when a claim is reported can effective claim management start. While an employer's late filing of a claim won't affect an employee's benefits, it can be associated with various problems that could raise costs for the company, many of which could be avoided by early claim reporting.


    Your business owner clients must understand how crucial it is to file a workers' compensation claim right away. They should be aware that providing workers' compensation coverage for their employees at all times is mandated by law (in most jurisdictions). Even a single day without coverage might result in litigation, criminal accusations, and financial penalties and fines.

    From: Property & Casualty360