Not Every Incident Requires a Claim
Filing claims is what insurance is for. But every claim affects your future pricing and insurability. Understanding when to file and when to handle things differently helps you make smart decisions.
Always File These
Third-Party Bodily Injury
Any injury to someone other than your employees requires filing. Defense costs alone justify involving your carrier. Professional claims handling protects you from escalation.
Significant Property Damage
Large property damage claims, especially those well above your deductible and involving complex liability questions, belong with your insurance company.
Legal Action
Any lawsuit, demand letter, or formal legal communication triggers your duty to report. Your carrier needs to provide defense. Trying to handle litigation yourself is a mistake.
Serious Worker Injuries
Major workers' comp claims require professional medical management. Severe injuries have legal implications. These aren't optional.
Think Carefully About These
Minor Property Damage
Damage barely exceeding your deductible may not be worth claiming. The premium impact over multiple renewal cycles might exceed what you'd recover.
Unclear Liability
When fault is genuinely uncertain, you might need carrier analysis. But if you're clearly not at fault, handling directly may be simpler.
Decision Factors
Claim Size Relative to Deductible
| Damage Amount | Deductible | Insurance Pays | Consider | |--------|-----------|----------------|----------| | $1,500 | $1,000 | $500 | Paying out of pocket | | $5,000 | $1,000 | $4,000 | Filing the claim | | $25,000 | $1,000 | $24,000 | Definitely file |
Premium Impact
Claims increase renewal rates. They affect your experience mod for workers' comp. Multiple claims compound the effect on pricing.
Claims History
If you already have claims, another one hurts more. A clean history gives you more flexibility.
The Reporting Requirement
Even if you might pay out of pocket, report anything that could become a claim. Injuries that seem minor can escalate. Property damage can be worse than initially apparent. Angry parties may pursue claims later.
Why Report Even Small Incidents
Late reporting can void coverage entirely. Situations escalate unexpectedly. Your carrier can provide guidance. Reporting protects your options.
Claims You Can't Avoid
Regardless of size or circumstances, some situations require filing. Any lawsuit or formal legal action. Any injury requiring medical treatment. Any demand letter. Workers' compensation claims by law.
Talk to Your Agent
Before deciding whether to file, discuss the situation with your agent. They understand your overall claims picture. They know how carriers will respond. They can help you weigh the options.
Common Questions
Will one claim raise my rates significantly?
Depends on claim size, type, and your history. One modest claim usually has limited impact. Patterns matter more than individual incidents.
Should I report if I'm not sure I'll file?
Yes. Reporting preserves your options without committing to a formal claim. Waiting until you're sure can result in late notice problems.
What if someone seems fine after an incident?
Report it anyway. Injuries can appear later. Document what happened. Protect yourself with carrier notification.