Late Workers Comp Accident Reporting – Still A Concern
One of the Six Keys To Workers Comp Savings -Timely First Reports has not been covered on this website for quite some time. I had thought that in 2025, online workers comp accident reporting would fix the problem of late reporting to the insurance carrier or TPA.
Many times, employers contact J&L when their Experience Modification Factor has recently spiked to a high level – more than 1.50. Self-insureds contact us when their Loss Development Factor increases sharply.
Two recent E-Mod reviews that we performed contained an ominous figure. The time between the employee reporting the accident and the insurance carrier or TPA receiving the notice was directly related to the size of the claim.
The Workers Comp insurance industry term refers to the delay as “lag-time.” Anyone who works in the WC claims area will tell you that claims should be reported within 24 hours.
The following comes from a combination of those reviews::
- $509,000 – lag time 85days
- $252,000 – lag time 44 days
- $183,400 – lag time 21 days
- $97,600 – lag time 32 days
If you check the prior link, a study was performed by a major carrier that shows the lag time effect on claims when late workers comp accident reporting occurs in specific claims. Check out the below graph on the comparison. The numbers are stark.
Workers Comp accident reporting remains the easiest one of the Six Keys to accomplish. This key can be controlled 100% by the insured employer or self-insured employer. The Five other keys have external concerns that may affect the workers comp savings.
What to Do – Bottom Line
Late workers comp accident reporting relates to an automobile oil filter company’s slogan – “you can pay me now or you can pay me later.” Hoping that a claim resolves on its own leads to zombie phone calls and higher reserves once the claims department receives the claim.
Think of the first report of injury as the adjuster’s authorization to open and adjust the claim.
