Keep insurance costs down by avoiding these claim reporting issues.
When employers have to file a workers compensation insurance claim, they can run into several issues. Unfortunately, while these missteps may seem minor at first, they can result in significant insurance rate increases. To keep the cost of your workers compensation insurance down, make sure you avoid making these mistakes when reporting claims.
- Late Claims Reporting
Some employers fail to report workers compensation claims in a timely manner. Oftentimes, late reporting occurs when there is confusion about when and who should make a claim following an employee injury. This interferes with the insurance company’s ability to investigate the claim. Because the insurance company cannot get a clear picture of the factors leading up to the claim event, they cannot verify the legitimacy of the claim. As a consequence, the insurance company will increase the employer’s coverage rates.
- Fraudulent Claims
Many businesses also suffer as a result of invalid workers compensation insurance claims. Oftentimes, these claims are filed when an employee is injured outside of work duties but alleges that they were hurt during the course of their workday. These fake claims are processed as if they are legitimate, leading to increased rates for the business owner. To avoid fraudulent claims from causing a spike in your premiums, make sure you work with your claims adjuster so they can conduct a thorough investigation of the claim issue.
- Failing to Oversee the Claims Process
Many employers choose to take a lax approach when it comes to monitoring their workers compensation claims. They believe it’s better to be hands-off because they trust their insurance company’s experience and knowledge. However, even the most experienced claim handler can make mistakes. This is why it’s so important for employers to provide secondary oversight. By taking an active role in the claims process and carefully reviewing your company’s claim, you can prevent mistakes that could result in increased insurance premiums.
These are some of the claim reporting and management mistakes that businesses should avoid. Do you have additional questions about your workers compensation insurance? If so, then contact the experts at PMC Insurance Group. Our dedicated team is eager to assist you with all your commercial coverage needs today.
