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Employer Can Do One Thing To Quickly Wreck Workers Compensation

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Employer Can Do This To Quickly Wreck Their Workers Compensation Program

There is one thing that an employer can do to wreck their Workers Comp program. It is a mistake that can be remedied very quickly.

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The mistake is not reporting claims timely. With so many of the states requiring the adjuster to make a compensability decision within a short time frame, the employer must report the accident quickly. Most companies do report accidents from their main office very quickly. It is when they have branch offices and/or divisions/departments that problems occur with timely reporting.

This is one of the Five Keys To Saving On Workers Comp that I have written and spoken about for many years. Letting the workers compensation adjuster know of an accident quickly allows for a more thorough investigation. The injured employee will receive their proper benefits when they need them if the investigation begins quickly.

Most claims are stamped in stone within 48 hours after their occurrence.  Reporting a claim more than a few days late to the insurance carrier or Third Party Administrator sets the stage for an expensive claim.

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One of the effects that employers may not realize is the adjuster that is setting the reserves on their claims will very often base some of the reserves on the “reputation” of the employer. An employer that chronically reports claims late may be seen as more of a higher risk. The adjuster may set the reserves much higher which will cost the employer a much larger amount of premiums. The worst first impression to an adjuster is an employer that reports their claims late.

Late reporting can also affect an employer at renewal time. Quite often, an adjuster will let the underwriting department know when an employer has reported a claim late. These late reports are usually compiled and provided to the underwriter at the time of renewal. We have often seen employers not being renewed by their insurance carriers for reporting late.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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