A newly trained crane operator makes an error and overloads a crane. The load falls and damages property below.
A seasoned crane operator suffers a minor injury during a lift, but continues on as not to halt the job.
Nature plays a role and high winds cause damage to a crane that was not secured properly.
Scenarios like the above happen.
Even with highly-trained employees and solid operational procedures in place, there has to be room for error. Each situation offers opportunities for improvement.
For the newly trained operator, was it simply an oversight or do training protocols need to be reviewed?
Why did the seasoned operator feel he had to continue the job? Are your workers under immense pressure and feeling anxiety around reporting incidents?
And when it comes to nature, that is out of your control. The only thing you can do is focus on your level of preparedness and make sure it’s top-level.
The tie between all of these scenarios is what happens next.
Your business has insurance for a reason, but when claims are filed late (or not at all), your business reputation is put into serious jeopardy.
Operators are working with high-value equipment on multi-million dollar projects. The importance of understanding why, how and when to file a claim is knowledge just as vital as working the machinery itself.
Claims are often filed late, sometimes days or even weeks past the initial issue, or not filed at all. Why?
Common misconceptions and mindsets like “we can handle it internally” or “it’s not that much damage” are some of the problems that lead to late claims reporting.
Filing a late claim can lead to:
Policy violations
OSHA violations
Denial of the claim (even if its valid)
Downtime on projects
Added expenses
Crisis and communication needs to the media and public
A potential loss of coverage completely
The timeframe for when a claim needs to be filed varies by state law and policy specific information. Typically, the window is 24-72 hours after an incident. Review your policies to determine the actual numbers. A “late notice clause” in a policy is something to consider. This can be used for grounds of claim denial, furthering the seriousness of timely filing.
You can withdraw a claim if costs are less than your deductible or the type of damage isn’t covered, but it's best to err on the side of caution.
What can crane companies do to establish a sound procedure around claims reporting?
Start with education.Your company should have training for all employees during onboarding to share pertinent details about how to begin the process of filing a claim. Safety first should run supreme and the team should feel supported in taking action.
Document processes. Outline the steps your employee should take after an incident. Everything from taking photos, to getting witness accounts, to sharing equipment logs and documenting weather conditions.
Have a claims team. Identify who on your team will file the claim and perform any necessary follow-up and make sure their responsibilities are company-known.
Keep communication lines open. While inspections are taking place, provide information with urgency, be available to answer questions and cooperate with your carrier.
If claims are consistently filed late, your carrier could raise your rates or change your terms at renewal due to prior negative experiences or cancel your coverage. You don’t want insurance challenges to disrupt your day-to-day operations, delay repairs and projects, or cause client relationships to deteriorate.
At Emery and Karrigan we’d be happy to review your current policies or conduct risk assessments. Proper and timely claims reporting is one of the most powerful tools you have to protect your business and we're here to make it as seamless as possible.
Contact us if you're looking for a partner in insurance and in business.