Lag Time and the Costs of Claims

Lag time, which refers to the period of time between the date an incident occurred and the date that the claim is officially reported to the insurer, can be very dangerous to the employee and the business if allowed to build up. Reporting a workers' compensation insurance claim as quickly and accurately as possible leads to reduced costs in claims and premiums.

In a 2001 study titled First Report of Injury: Impact on Claims Cost, it's apparent that with each week of not reporting a claim, the expenses increase dramatically. Studies by the National Council on Compensation Insurance (NCCI) have shown that the longer an employee’s injury goes unaddressed, the more likely the employee will seek legal counsel, which can significantly increase the cost of a claim.

Reporting injuries within a few days will save you money, reduce your chances of being litigated, and will help the overall morale of your workforce. 

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