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American Global Article Lag Reporting

Dear Association Member

This is another in the American Global of New York LLC, series of articles as our Workers Compensation Safety Group Manager. Our goal is reducing Members Workers Compensation costs by providing the most competitive alternative available to the sub-contractor community.

Reporting and managing your claims takes a good deal of time and effort out of your busy day.  To help make the chore a smoother experience we urge our members to help reduce the cost of claims by reporting claims early.  First rule of thumb “don’t wait to see if it will get serious”.  Late reported claims have a nasty tendency to get more serious than first anticipated and tend to take on a costly life of their own.

The National Council on Compensation Insurance (NCCI) a nationally recognized authority on Workers’ Compensation has studied the effect of late reporting of claims often referred to as “lag”.  The study concludes that even a two-week delay in reporting claims can result in as much as a 51% increase in costs and reserves. Accordingly, delays in reporting claims adversely affects your Experience Modification and can cause lost work opportunities.  Other studies and specific claims we have managed show similar findings often resulting in higher renewal premiums.

A longer wait time for claimants to receive medical treatment and lost wage compensation will result in them and their families seeking the assistance of an attorney.  Attorney intervention has been shown not only to increase the claim cost but also the potential for a labor law third-party law suite effecting your General liability coverage and its premium.   

The State Insurance Fund has also recognized this growing concern and is now working with safety group managers to help identify safety group members who are late in reporting clams.  We are taking steps to provide all members, especially those who require assistance identifying claims and potential claims, with best practice claim reporting procedures.

As an Association Member ask our Safety Group Manager for advice and consider joining. We encourage you to report claims as soon as practical but no later than the following day. Our team of dedicated claims consultants will assist you with determining how the claim should be handled especially in its early stages.  Paying minor first aid type claims directly by you will help reduce your Experience Mod Rate as well as continue to maintain maximum up-front discounts, dividends and improved loss ratios for both you and the group.

There will be more to come on this topic from us, a series of workshops are being planned.

Please do not hesitate to contact Jack Frazier (516-770-8671) for more information on the benefits of becoming a member of The STA & NESCA Safety Group 560 or to arrange to discuss ways to manage your claims and keep your company’s claim history positive and your premium cost competitive.

Jack Frazier
Senior Vice President
American Global of New York LLC
516-770-8671
Jack.frazier@americanglobal.com