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Loss runs can be very detailed providing extensive information on each claim, or the loss run can be very minimal listing only the claim number and the amount paid for each claim. A well-designed loss run can assist the employer to identify problem areas, develop risk management goals and control claim cost. The loss run can be customized to provide your company with the level of information you seek. It should be noted the more details you request, the longer the loss run becomes.
Most claim management information systems can sort out and provide the information you want shown on the loss run in a chart format. The employer should determine what information that want to know about their claims before asking for a loss run.
The basic information that should be shown on a loss run would include:
If you want to make the loss run more detailed (and more complex) you can have the loss run include information on:
A very detailed loss run that contains all of the above information on each of your company's claims can result in boxes of paper each month being delivered to your company, or if delivered electronically, far more pages of data than you can scan through. A poorly organized loss run is difficult to understand and does not provide you with the information you need to make proper business decisions.
To maximize the benefit of the loss run, the claim information should be sorted to provide the claim management information you need to best control your claims. Some of the possible or recommended sorts would include:
By using sorts of this nature on the loss run, the employer can identify the areas where the time frames can be improved and the areas where safety can be improved, both of which will lead to lower future claim cost.
Financial sorts of the loss run can be used to give the employer a snapshot of the level of payments and cost of claims. Some of the ways to sort the loss run financially include:
These same financial sorts can be used for the prior fiscal quarter and the prior fiscal year.
In addition to providing information on time frames, safety issues and financial issues, the properly constructed loss run can be used to determine trends in each of these areas. By comparing the results shown on the loss run with preceding months and preceding years, the employer should be able to see:
A loss run for the employer is like an x-ray or an MRI for the doctor. It allows the employer to see inside of their claims program and to know what is occurring on individual claims and all of their claims. By determining what should be monitored, the loss run can be structured to provide the risk management data you need. If your loss run is not providing you with the information you need, you should be talking to your broker, TPA or insurer to restructure the loss run to fit your needs.
Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.
Contact: RShafer@ReduceYourWorkersComp.com or 860-553-6604.
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
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