why is the timely reporting of claims important? annual membership meeting september 15, 2011

Why is the Timely Reporting of Claims Important?

Annual Membership MeetingSeptember 15, 2011

Claim Reporting is not always black and white.

• What are the different types of claims? • Should an incident be reported?• What are the advantages of a quick

response?• What are the consequences of late

reported claims?

This outline is designed to help you know when and how to respond to a potential claim.

Why is this Important?

St. Paul Insurance Company showed a 78% cost increase for late reported liability claims.

Types of Claims Property and Liability

Property claims are physical and easiest to identify. However, damage caused by malfunction, disrepair, vandalism, and other forces could be at play. Don’t delay.

Liability claims are often more complicated to identify and process. The following slides will show some examples.

73% of all Property Claim

Dollars are weather related

Timely Reporting of Claims

Boys basketball game Player goes for a

loose ball Significant injury to

mouth & teeth Notice of loss

received 7 ½ months later

Substantial defense costs will now be incurred to defend suit

Timely Reporting of Claims

Student falls down stairs and has head injury

EMS called and student transported

Claim reported 9 months later

Parents have engaged an attorney and are looking for damages.

Default judgments

Reservation of rights letter

Evidence is destroyed

Claimants represented by counsel

Increased expense costs

Consequences of Late Reported Claims

Advantages of a Quick Response

Keep the injured party from seeking legal counsel

Provide injured parties with appropriate information to ease emotional stress

Should an Incident be Reported?

Contact your agent

Take advantage of the Legal Help Desk

Call SORSA Executive Director

Thank You!Thank You!