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Lag Time In First Reports Very Costly To Employee and Employer


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.

Clock Lag Time on the Roof Money Time
Wikimedia Commons – brewbooks

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.

©J&L Risk Management Inc Copyright Notice


James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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