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Timely Reporting of Worker's Compensation Claims Provides Many Benefits
Jeffrey L. Lance, CPCU AIC
December 12, 2007

Employers should realize that unless Work Comp claims are initiated properly, they tend to create unnecessary problems resolving or even defending a claim. In many cases, this could also prove to be more costly for the employer.

Employers who report losses as soon as possible, allow their insurance company the ability to manage the claim much better. This can translate into lower settlements, resulting in a reduction of work comp premiums incurred by the employer. It will also allow for a more complete and thorough investigation by the carrier, giving the employer a better defense of the claim.

Some of the advantages of reporting a claim early in the life cycle include:

  • Witnesses can remember details better and can provide more accurate statements;
  • Pictures of the accident site can be taken closer to the date and time of the accident, if needed; and
  • The carrier and employer have better control directing medical treatment and keeping medical costs down.
Employers who report their work comp injuries timely show their employees they really care and are concerned for the employee's well-being. This empathy displayed by the employer can lead to a better working environment and fewer questionable claims.

The Statute of Limitations that governs how long the employee has to file a suit can be extended if it has not been reported in a timely manner. For example, in the state of Missouri the Statute of Limitations is 2 years from the date the last payment is made on the claim. However, if the claim was not reported, this period is extended to 3 years. This "extra year" of exposure to litigation can prove harmful to the ultimate defense of the claim.

In summary, there really is no disadvantage to reporting work comp claims promptly. Most carriers allow "notice only" claims to be filed without any consequence to the insured. If you would like more information on this topic or have other questions about how to minimize your exposure, please give me a call at (314) 342-7196.