Respond in a Timely and Effective Manner
Navigating claims can be frightening, but implementing a claims management plan can streamline the process. Here at BITCO, we understand the critical role that prompt reporting and effective management of claims play in maintaining operational integrity and financial stability. In this blog post, we will share our best practices to enhance your claims management process to respond in a timely and effective manner.
Overall Plan
Communicate the plan to those responsible for claim management within your company. Review the plan regularly with relevant personnel to keep it up to date. If there are any modifications to the plan, promptly share the details with the designated individuals. Identify the individuals responsible for reporting incidents involving injury or property damage to your insurance agent or carrier and mandate prompt claim reporting to these designated persons. Restrict access to confidential claim information to specific personnel, such as management, human resources, or the owner. Additionally, establish clear reporting procedures for incidents outside of regular business hours, including weekends and holidays.
Immediate Response
Assess whether immediate action is necessary to obtain medical attention for injured individuals or to prevent further property damage. Inform personnel about the locations of emergency medical facilities near all job sites and ensure that first aid supplies are readily accessible when needed. Secure the incident scene and avoid disturbing it unless a specific hazard is present. Refrain from attempting to settle any claims on your own, and do not admit fault.
Notification and Reporting to Your Insurance Carrier
Promptly report all incidents, including those that could potentially turn into claims, directly to your insurance agent or carrier.
Value of Prompt Claims Reporting
- Provides personal benefit for reporting a claim promptly, especially if it involves injuries to another person. Prompt claims reporting also helps the company protect its reputation by responding quickly to a claim.
- Claim representatives can build rapport and display empathy for the injured parties soon after the loss has occurred (which may help to reduce settlement amounts).
- Provides the claims department opportunities to thoroughly investigate the claim and the circumstances surrounding it to make an accurate liability decision and to consider third-party responsibilities.
- Prompt reporting and handling of claims leads to quicker resolution. According to the National Council on Compensation Insurance, the lowest median costs per claim happens when injuries are reported within one to 14 days of the damage taking place.
Documentation
Documenting is crucial when it comes to claims. It serves as evidence to support the validity of a claim, it provides transparency and accountability, and it can facilitate the efficient processing of claims. Document all information, including:
- Date, time, and place of the occurrence.
- Claimant names and contact information.
- A description of the occurrence.
- All witnesses and their contact information.
- How was the loss first identified?
- Date the occurrence was reported to the insurance carrier and/or the insurance agent.
- Photos of the incident scene and damages.
- Preserve any evidence.
Working with Your Insurance Carrier
A good claims management plan will designate one person and a backup as the liaison with the insurance carrier's claim representative. This person will stay informed about the status of a claim through regular contact with the claim representative or agent. They will also maintain contact and cooperate with the claim representative during the claims handling process. Any company personnel with knowledge of the claim should be available and fully cooperate with the insurance carrier.
Cost Containment - Workers' Compensation
Collaborate closely with your workers' compensation carrier's claims representative to manage cost containment strategies effectively. Ensure regular consultation and collaboration with them to establish appropriate contact with injured workers. Additionally, implement a return-to-work policy and actively encourage and oversee safe practices within the workplace.
Notification and Reporting to Government Agencies
Establish reporting procedures and ensure situations that may require notification to government entities, such as law enforcement, OSHA, MSHA, EPA, DOT, etc., are addressed appropriately.
By prioritizing prompt reporting and management of claims, you not only safeguard your business but also pave the way for sustainable growth and success. To connect with a local BITCO agent, click the button below. We are here for you!
For information purposes only. BITCO's blog content does not address all potential circumstances and is not a substitute for business, safety, or legal consultation.
