Moving Insurance Claim Response Time: The Need for Speed
You already know that in workers compensation and liability situations, a quick response to injury claims is essential to control costs and facilitate a successful outcome. In fact, according to a study by Liberty Mutual Risk Management Solutions, the longer you wait to report and begin responding to a claim, the higher your overall claim costs:
- 9% more if reported between 4-7 days
- 20% more if reported between 1 and 2 weeks
- 32% more if reported between 2-3 weeks
- 48% more if reported between 3-4 weeks
- 72% more if reported one month out or later
A speedy response to moving business claims can lower overall costs in several ways:
- Early reporting can get the ball rolling on the required paperwork and filing deadlines, avoiding penalties and added legal costs;
- Early investigation can help identify questionable or fraudulent claims;
- Thorough documentation early on preserves crucial facts about the specific injury and can deter unscrupulous employees from embellishing the details of the event or bringing additional body parts into the claim later on;
- A quick response can mitigate the severity of an injury by getting the injured worker immediate medical attention and decreasing recovery time.
What you might not know is that the same is true for moving company insurance claims. If a customer contacts you to report damage to her household goods, your chance of containing the loss is better if you respond immediately. Here are some key steps you can take early on to help you control the overall costs of moving company insurance claims:
- Get all pertinent facts about the moving company insurance claim, including the name and contact information of the person filing the claim, the date of the move, and when the damage was first noted.
- Take down detailed notes about the damage, ask follow-up questions, request photos and receipts, and take any witness statements.
- Don’t pass judgment or give your opinions about whether their loss is covered. Just document the initial report and let someone else adjust the claim. You don’t want to do anything that would cause the customer to change stories or alter the details of the damage.
- Connect the customer to your moving company insurance claims department or insurance adjuster as quickly as possible to avoid any frustrations or inflation of expenses.
- Avoid answering questions about the outcome of the claim, e.g., whether the claim will be paid. Refer them to the claims adjuster for more information.
Responding quickly to your customer’s household goods damage claim can also help you save face and avoid unnecessary legal expenses. Customers today have a variety of forums where they can vent their frustrations, including social media. If they’re not satisfied with the way their claim is being handled, negative comments on social media sites can grow into an angry discussion thread that could be seen by the general public and end up doing a lot of damage to your image and reputation. And many disgruntled customers won’t hesitate to hire a lawyer, which can only drive up your overall costs.
Your best strategy to control the costs of a moving insurance claim is to address the problem as soon as the claim is filed. Being proactive can protect your image, your reputation, and your profits.
One final thought: With FVP Insurance, claims handling is always free. If you’d like to pass your moving insurance claims burden on to the professionals, FVP insurance may provide a smart business solution.