Colleen M. Dempsey Senior Personal Insurance Claims Consultant View Bio

For many organizations, having a workers’ compensation claim can be a nightmare. However, in our experience, the longer you take to report a claim to your insurance partner, the worse the nightmare can get.

From cost to OSHA violations, here are the top reasons you should not wait to report a workers’ compensation claim:

    1. Historically, late reporting of claims results in increased costs. The financial effects of late reporting can be significant, as the average cost of a claim is typically higher if it is reported late. An insurance carrier’s ability to investigate a claim, determine compensability, and identify potentially fraudulent claims may be hindered as witnesses may no longer be available or key evidence may not be preserved, jeopardizing an ability to defend.
    2. Delaying the reporting of claims can ultimately lead to the injured associate returning to work later than expected.
    3. If a claim is filed within the appropriate time frame, it will allow the employee to receive treatment and wage benefits timely. Any delay could prevent the right benefits from reaching the employee.
    4. If a claim report is delayed there can be financial consequences. The first report of injury must be filed within 18 days of the accident or 10 days from the employer’s knowledge, whichever is later. Failure to do so could result in fines up to $1000 and penalties up to $2500
    5. OSHA has claims reporting requirements for specific injuries sustained. Depending on the seriousness of the injury sustained, OSHA reporting may be necessary within 24 hours of the incident occurrence.
    6. A delayed claim can also negatively impact the sense of trust between an employee and their employer. Having this trust is a key factor in the outcome of a workers’ compensation claim and it can be severely affected if an injury isn’t addressed promptly.
    7. On top of employer/employee trust between the injured employee and the employer, other employees at the organization may be unhappy to learn that a co-worker’s claim has not been addressed promptly, impacting workforce trust and willingness to report their own future injuries to the employer promptly.

All in all, reporting all workers’ compensation claims in a timely manner, including minor ones, provides an opportunity for accident investigation to help prevent future losses. This opportunity is diminished if the claim isn’t reported promptly. Not to mention, timely reporting of all claims can potentially have a positive impact on policy premium, saving the organization money in the long run.