One of the key benefits of partnering with an insurance provider with expertise in your business sector is the ability to appropriately handle claims. When a claim occurs 鈥� no matter the size 鈥� it may be a concern that your premium rates could rise the following year. Although tempting to self-handle claims or delay the claims handling process, ultimately this practice could cost more money and cause rates to increase to a greater extent than if a business immediately reports the claim to their insurance carrier.
When following the proper channels, businesses can benefit from the support that comes with coordinating the claims process through an expert. Claims representatives have proven knowledge and experience to settle claims at the lowest possible amount while also providing lifecycle claims handling, offering customized support, and detecting potential fraud. Claims representatives are also able to close the claim as soon as possible, helping with the prevention of high litigation costs.
Claims Costs & Reporting Lag Time
Depending on business size, the cost of a claim can impact a company鈥檚 Experience Modification Rate (for Workers鈥� Compensation) and underwriting discretionary pricing. (EMR), also known as experience modification factors or an experience modifier, are a comparison of a company鈥檚 expected Workers鈥� Compensation claim costs versus the actual claim costs.
To support strong EMR results and reduce overall costs, it is in a company鈥檚 best interest to report a claim as soon as it occurs. There are numerous studies confirming that the sooner an insurance carrier can work on claim management, the lower the ultimate payout will be. In fact, according to a research brief on the relationship between accident reporting lag times and claim cost in Workers鈥� Compensation by the the median cost of claims reported one day after an incident was significantly lower than claims that were reported two weeks after an incident.
Best Practices for Claims Handling
It is crucial to report a claim immediately to your company鈥檚 insurance carrier to enable the carrier to assign an expert to handle the claim, create a case number for the incident, and begin to control the cost. If a claim occurs during your policy period, make sure to report the claim as soon as possible directly through the insurance carrier鈥檚 website or phone number.
Reporting claims promptly will benefit your company and, ultimately, help keep insurance costs low.
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础尘别谤颈蝉耻谤别鈥檚 SureClaims鈩� experience leverages cost-saving practices to help protect your bottom line. Minimize total costs through technology, clinical expertise, medical provider collaboration, and negotiation services, including medical bill review, injury fraud prevention, early return-to-work programs, risk mitigation, managed medical costs and our digital first notice of loss portal.
