Lag Time Costs Employers Now And In The Future
Lag Time is a very simple Workers Comp term. It is a measurement of how quickly the employer reports an injury to the insurance carrier or TPA. A longer lag time is money the employer is throwing down the drain. Many studies have shown that employers with longer lag times pay more in Workers Comp premiums.
Reporting injuries ASAP remains one of the Six Keys To Saving on Workers Comp Costs. The adjusters set your Workers Comp reserves which feed into your Total Incurred. The total incurred drives your Workers Comp Experience Mod.
An employer that keeps a reputation of reporting claims late pays more for their Workers Comp coverage. I studied a group of claims that showed a 400% increase in claim payments with delays in reporting claims.
Another reputational risk with adjusters is the Twilight Zone Phone call. An adjuster that receives a few of those regarding any insured tends to reserve those files with higher figures.
Fixing late accident reporting problems starts with Senior Management or company owners mandating ASAP reporting of Workers Comp claims. Most insurance carriers provide an online reporting platform.
Employees deserve excellent quick medical treatment for on-the-job injuries. There is no excuse for late reporting. Some states such as California enacted a law that requires a First Report of Injury filing by the employer with 24 hours of having knowledge of an accident.
With the technology in place today, once cannot reasonably justify lag time.
