Proper Insurance Claims Follow Up Procedures Yield Big Dividends for Schools & Non Profits
If you read our first article in the series “Managing Insurance Claims First Reports Can Have Big Impact for Schools & Non Profits” then you know that it’s a two part process, “be prepared” and “follow up.” This article shares the concept of how important proper claims follow up is for all workers compensation insurance claims, and all general liability insurance claims.
WHY WORKERS COMPENSATION CLAIMS & GENERAL LIABILITY INSURANCE CLAIMS ARE DIFFERENT:
Unlike many other types of insurance claims, many liability and workers compensation claims can get larger with time. In industry parlance this is called Loss Development as the claim develops over time it tends to get larger as law suits, negotiations, cost of continual medical e.t.c. increase the ultimate insurance carrier payout over time. A property claim for a burned structure does not deviate as much outside perhaps loss to the business income.
Thus we typically refer to both Workers Compensation Insurance & General Liability Insurance as very expensive credit lines that carry a high interest rate, comp especially. Although the carrier pays the loss upfront, the insurance marketplace is very efficient in re-couping the money from the policy holders in the form of premium increases for 4 to 5 years upon each renewal which is essentially a charge back.
THE IMPORTANCE OF DEVELOPING A CLAIMS FOLLOW UP PROCEDURE FOR YOUR SCHOOL OR NON PROFIT:
You wouldn’t hand a stranger your school’s checkbook, sign the blank checks and forget about it! That’s absurd, yet that is exactly what most Non Profit Organizations, Private Schools, and Charter Schools do. That stranger is the claims adjuster.
If you have a set procedure in place of when to follow up , with whom to follow up, and questions to ask you can and will have an outsized impact on the ultimate payout of a claim. In one example our claims staff followed up with a client and asked if there were any alternative duties at their facility their injured worker could perform instead of sitting at home and collecting workers compensation benefits. They assigned this injured workers a file scanning project that enabled the worker to come back, and be productive saving the School close to $67,000 in additional workers compensation costs. This only happened because someone was involved, asked the right questions, and had taken corrective action.
The bottom line is it’s critical that someone in organization have a set follow up procedure in place so they can monitor and effect not just the claim value, but the ultimate cost to your organization.
Download our Free Claims Report Tool for both Workers Compensation & General Liability Insurance. Take back your check book, control and manage your costs as it’s ultimately your hard earned dollars at stake NOT the insurance companies.