Why is the Timely Reporting of Claims Important? Annual Membership Meeting September 15, 2011

Claim Reporting is not always black and white. What are the different types of claims? Should an incident be reported? What are the advantages of a quick response? What are the consequences of late reported claims? This outline is designed to help you know when and how to respond to a potential claim.

Why is this Important?  St. Paul Insurance Company showed a 78% cost increase for late reported liability claims.

Types of Claims Property and Liability  Property claims are physical and easiest to identify. However, damage caused by malfunction, disrepair, vandalism, and other forces could be at play. Don’t delay.  Liability claims are often more complicated to identify and process. The following slides will show some examples. 73% of all Property Claim Dollars are weather related

Timely Reporting of Claims  Boys basketball game  Player goes for a loose ball  Significant injury to mouth & teeth  Notice of loss received 7 ½ months later  Substantial defense costs will now be incurred to defend suit

Timely Reporting of Claims  Student falls down stairs and has head injury  EMS called and student transported  Claim reported 9 months later  Parents have engaged an attorney and are looking for damages.

 Default judgments  Reservation of rights letter  Evidence is destroyed  Claimants represented by counsel  Increased expense costs Consequences of Late Reported Claims

Advantages of a Quick Response  Keep the injured party from seeking legal counsel  Provide injured parties with appropriate information to ease emotional stress

Should an Incident be Reported?  Contact your agent  Take advantage of the Legal Help Desk  Call SORSA Executive Director

Thank You!