A study out of the Hartford in 2000 found that the longer a delay in reporting a workers’ comp claim, the more expensive that claim became. Not super shocking, but as everyone is trying to close claims faster it becomes more important to start the process efficiently from the get-go. If a claim is reported late it is usually already off-track.

NCCI did a study looking at 44 states and their outcome was a little different than the Hartford, they said that the cost depends on more than just time. The nature of the injury also plays a part. Sprains, strains and contusions were the least expensive when reported within week one after the injury. But fractures and lacerations were least expensive if they were reported two weeks after the injury.

However they also found that claims reported within the first two weeks were least expensive overall than claims reported more than two weeks later or claim reported day of. They attribute that to the fact that those injuries tend to be really serious and need immediate care, whereas sometimes a worker hurts their wrist and think it will go away but when the pain is still there three days later, they call it in. They found that the median cost per claim for those reported on the day the injury occurs is 25 percent more expensive than claims that were reported within a week of the injury, likely due to the catastrophic nature of many of these injuries.

Claims reported up to a week after the injury were less costly than claims reported in week two, and week three, and so on. More than 4/5^th of lost-time claims were reported within the first two weeks, and almost half of lost-time claims are sprains or strains but fractures and lacerations also account for a good chunk of lost-time claims. Again as the weeks pass in claims involving those specific types of injuries, the median cost goes up. If a sprain or strain is reported in week four, it can run about 70 percent more than when reported in week one after the injury.

The study also looked at the relationship between length of time after the injury that it was reported and the rate of indemnity and attorney involvement. They found that as weeks went on, medical costs took up a lower percentage of the claim while indemnity costs rose. Maybe that is due to the worker being out of work for that much longer and so wage benefits kick in more often. The more weeks after an injury that it is reported, the more likely an attorney will be involved as the case can get more complicated and resolution becomes harder.

What they both determined was that late-reported claims cost more than they would have if they were reported earlier or on the day of the injury.