From the experts at Society Insurance
A kitchen employee cuts a finger during a shift and says it’s no big deal. A week later, the injury turns out to be a torn tendon, the employee is unable to work, and workers’ compensation benefits suddenly become an urgent issue—with the employee talking about hiring an attorney.
For hospitality operators, that scenario underscores why even seemingly minor workplace injuries should be reported promptly. Early claims reporting allows insurers to begin investigating and managing a claim while the facts are fresh—and can help reduce delays, disputes and potentially higher costs.
Simply put, the sooner a claim is received, the sooner it can be processed, managed and brought to a resolution.
Reporting Claims Early Mitigates Legal Risks
Early reporting helps ensure that important evidence is obtained or documented while it is still available. If litigation ensues, this documentation can be important for verifying claims and protecting your business.
When employers don’t take action promptly to assist their employees, the employees might seek legal recourse through an attorney. This can lead to costly legal expenses and prolonged claims resolutions.
Reporting Claims Early Can Reduce Regulatory Penalties
Applicable OSHA reporting guidelines must be followed after injuries—even ones that may seem small or negligible. Failing to do so can result in additional fines and penalties, adding insult to injury.
Repeated accidents can lead to serious operational challenges, making regular safety audits important. Certain states have penalties for late reporting of workers’ compensation claims, so contact your adjuster to determine what those parameters are.
How to Create a Timely Claims Reporting Process
Managers and staff should know where and to whom claims should be reported, as well as what information is required. Below is what’s needed to help ensure claims are reported promptly and with the information your adjuster needs:
- Evidence-gathering and reporting checklist, to be completed within the first 24 hours
- Notification hierarchy for managers/owners/supervisors
- Claim submission and verification
- OSHA reporting guidelines
Creating a Culture of Safety
Your hospitality business should create a culture of safety that values employee health and wellness. When employees feel comfortable and safe reporting their injuries, it saves time and money by being able to report the claim early. If an employee waits, their injury can get worse, and they may hide it until they can’t any longer. Train all employees on health and safety best practices to prevent accidents in the first place.
This information is provided as a convenience, and it must not be assumed that it has detected all unsafe acts or conditions. This information is not professional advice; it is designed to assist you in recognizing potential safe work problems and not to establish compliance with any law, rule or regulation.
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