We will all probably agree that the best claim is the one which never occurs. However, claims will happen, and effective management of them is critical to the operational and financial success of any company.
This article is intended to point out key areas of opportunity for employers to mitigate their claims exposures, beyond the carrier.
Special Claims Handling Instruction
Communication = Knowledge = Power
Communication Protocols: At the inception of your policy, create communication paths which address:
- The gateway for reporting new claims
- Claims acknowledgements
- Troubleshooting
- Investigative information
In the absence of these, inefficient results and delays may occur with moving the claim toward resolution.
- Claims Reviews: At the inception of your policy, schedule regular dates to have collaborative reviews with your carrier partners. Whether they are automobile, general liability or workers' compensation claims, regular discussions with your carrier will result in proactive and collaborative solutions to resolving your claims.
- Large Reserve & Large Loss Alerts: Assure that alerts are set up to advise key people in your organization of significant reserve increases or when a large loss occurs. Opening up these lines of communication will result in early collaborative discussion and the ability to formulate an effective resolution strategy.
- Settlement Consultation: It is important that your carrier discuss settlement options on your key claims. This provides you with insight and the ability to provide input on where your settlement dollars are being allocated.
- Audits: Whether performed by the carrier staff or assisted by your broker partner, insist on a quality review of your claims at least once per year and that the results are made transparent to you. This will enable you to benchmark the adjuster's performance within the accounts claims handling instructions and against industry standards.
Post-Accident Incident Investigation
Ensure with all your front-line managers that that every accident is thoroughly investigated to determine its root cause, and that corrective action steps are taken immediately.
Require sign off by department managers of all investigative/corrective action reports. These simple but effective steps will mitigate or even eliminate future losses.
Ensure that your investigative and corrective action processes are part of an overall safety and loss control program.
Return To Work
Return to work programs help your employees’ transition from the point of injury back to their normal job duties as quickly as possible. Benefits of a solid return to work program include:
- Helps your company maintain consistency and productivity in its core operations
- Keeps your employees connected to their workplace, thus maintaining morale
- Mitigates your insurance costs through the reduction of paid lost time and medical benefits
- Helps your company control its experience modification factor, which can reduce your premium costs
- Makes your company more attractive to an insurance underwriter
We hope that you have found this article beneficial, and we look forward to working with you to design and implement a program that will assist you in reducing your total cost of risk, beyond the carrier. Find an NFP Professional or office near you, to learn how our extensive technical knowledge, proactive oversight, and top-to-bottom service can make the difference in your claims program. Visit our claims management page for more information.