Why prompt reporting of your claims is important

Why prompt reporting of your claims is important.

 Lag Time, or the days from date of injury to reporting the claim to your carrier, is one metric used by your carrier to analyze your risk performance. Studies show that claims reported within 24 hours are 33% less expensive.

Why is prompt reporting important?

Prompt reporting allows for appropriate medical care for the injured employee, and early interaction with you and your employee to discuss modified duty options. If a claim is questionable, the carrier can investigate the facts while they are fresh. Or, if there is a responsible third party, subrogation can be pursued immediately.

What is your average “lag time” for reporting claims during this policy period

Ask your insurance broker or carrier for a current loss run to assess your risk performance for timely claim reporting. In California, First Aid claims that incur medical costs from your clinic or doctor must also be reported. When reviewing your loss run, ensure these First Aid claims are recorded accurately.

Establish a lag time goal (KPI):
1. Reduce the “lag time” from date of injury to report date. You can then measure the results of this goal by reviewing the lag time captured in your loss run.

California Required Forms and deadlines:

  • Employee Claim Form (DWC-1): Give to employee within one working day (immediately is optimal)
  • Employer Report (5020): Report to Carrier within 5 days (preferably within 24 hours) (OK to send DWC-1 later, if necessary)

How can an employer reduce lag time or the time between date of injury and date reported to the carrier?

Assess your current loss runs to determine your average lag time. Identify where the obstacles are:

  1. Employee doesn’t report timely to supervisor
  2. Supervisor doesn’t report timely to Safety Director or Management
  3. Safety Director/ Management doesn’t report timely to carrier

Begin a systematic training to all parties to reduce reporting roadblocks.

Employees: All new hire orientation includes safety training and how and who to report all incidents/ injuries. Repeat training during safety meetings and in departments that have a record of late reporting.

Supervisors: Train all supervisors on injury reporting and accident investigation. Track which departments have a poor record and provide retraining.

Managers: Set goals and include lag time in performance evaluations