The conditions of your automobile liability insurance policy state that you should report all claims in a timely manner. So, what does that mean? Should you report claims when you get all the information? Report them when you feel like it? No, you should report any claim the same day it occurs and no later than 24 hours from the time of the accident. Late reporting of claims is something that your insurance company tracks in their reporting system. If you are trying to obtain new insurance or renewing insurance and there is late reporting of previous claims, the insurance company may hold that against you when evaluating your company. The insurance company equates late reporting to increased claim costs. Don’t put yourself in this situation. Remember, you want your company to be in the best position to obtain the best insurance rates.
So, what should you do to train your employees to report claims timely? To start, have a written post-accident policy stating that all claims should be reported to management the same day an accident occurs. Any claim reported more than 24 hours late will result in disciplinary action. Be sure to have your employees sign and date this policy. Having a reminder of this policy in your accident kit may help them remember to report claims timely.
You should train your employees to obtain contact information of the other party involved in the accident and any witnesses. This should include names, telephone numbers, and email addresses of all potential parties of the claim. This is critical information for the claim and generally the hardest to obtain. The simple solution is to provide blank index cards in every accident kit. That way, your employee can quickly hand those to any potential witnesses and ask them to put their names, telephone numbers, and addresses directly on the cards.
After your employee has obtained witness information, they should write a personal statement of what happened and send it to management within 24-hours. This statement should include the weather conditions, location, law enforcement contact, statements made by the adverse party, and the mechanics of what happened.
Once you receive the information, do not delay in reporting the claim to your insurance company. You should always have the insurance company’s contact information handy. Additionally, you should report the claim to your insurance agent, since they may be able to assist you with investigation and reporting.