Just as ensuring accurate information on the loss notice is important, reporting a claim promptly is essential to the claims handling process.

As time passes, it can become increasingly difficult to determine the compensability of a claim.  If a claim is not reported right away, the adjuster will find it more challenging to handle the claim as memories fade, stories change and witnesses may no longer be available.  As time passes before a claim is reported, adjusters often find themselves “back tracking” trying to get needed information.  Also, the adjuster will most likely have a much better outcome with the claim if they are able to control the process from the beginning such as directing medical care or setting up an appraisal, etc. 

Additionally, with Workers’ Compensation in particular, each state has its own rules and time lines regarding reporting, filing and paying a claim.  If these guidelines are not followed, the state can go so far as to fine the insurance carrier as well as the insured. 

Another outcome of late reporting is the claimant may perceive the insured is trying to avoid paying the claim.  In this instance, the claimant may become difficult to work with or may even seek legal counsel, which can quickly drive up the cost and duration of a claim.

Claims handling can prove to be difficult for many reasons, but managing this process is made much easier, and we often experience better outcomes when a claim is promptly reported.