Don Dressler Consulting

Many employers are allowing too much time between a work comp. injury and a report to the claims administrator handling their claims. According to the latest reports, the average time in California is almost 16 days between an injury and notification of the work comp. insurer or claims handler.

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This data is from a just released study by the California Workers’ Compensation Institute which analyzed 279,000 workers’ compensation claims from 2002 through 2005.

Delay in reporting workers’ compensation claims is costly. The National Council on Compensation Insurance has published studies that show the cost of a claim increases by 4 percent for each day of delay in reporting. Claims that are filed between 11 and 20 days increase the cost of injury by 29 percent. Between 21 and 30 days, the increase is 39 percent. Claims reported more than 30 days late increase by 48 percent. Litigation rates also increase. If a claim is reported within 10 days, the litigation rate is 22 percent. For claims filed more than 30 days late, the litigation rate skyrockets to 47 percent.

The CWCI’s latest Research Update indicates that since the 2004 California work comp. reforms, the average number of days from the date of injury to claims administrator notification has improved 23% from more than 20 days to now 15.7. But this is still much too long.

Reporting a claim doesn’t need to be complicated — just pick up the phone, send a fax, or go online any time of day or night. By whatever method, it’s important to get the insurance carrier or claims person involved immediately to ensure a proper investigation. Even if you don’t have all the details, just report what you know.

Consider an example of a $5,000 back injury. A one-week delay in reporting it would, on average, increase the cost to $6,000; a two-week delay, to $7,000.

When your experience mod. is calculated, that additional cost goes right to the bottom line. So as the clock ticks, remember that it’s probably costing you money on this claim and on your later premiums.

Iif you would like an e-mail copy of the latest CWCI Research Update, “Analysis of California Workers’ Compensation Reforms, Part 2: Temporary Disability Outcomes, Accident Years 2002-2006 Claims Experience” just e-mail a request to info@dondressler.com.

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For help in lowering your workers’ compensation or other insurance costs,bJust contact: Don Dressler at info@dondressler.com or call 949-533-3742.

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