Policyholders should remember to report claims as soon as possible to avoid potential penalties from state labor departments.

Often, states will assess penalties for what are generally called “late first action,” a late payment or a late denial of benefits.

“The earlier you report a claim to us, the more time we have to address it,” said Angie Andresen, Vice President of Claims at SFM. “Employers should report claims as soon as they know about it — even if there’s no lost time or medical treatment. Plus, if the claim does turn into something more, we can start handling it immediately.”

If it is deemed that it was the employer’s fault for a late first action, the policyholder will bear the responsibility for the penalty, which, in some states, starts at $3,000 and can increase based on the situation.

The key takeaway? Report claims as soon as possible and keep an open line of communication with your representative.

If you have questions, reach out to SFM.