Tender the claim – you may just get lucky

Recently, I sat with one of a prospective client to discuss their claims management practices and how to reduce the claims expenses.  During the process I came across hundreds of minor claims that totaled up to more than $300,000 in claims over the course of the years.  I asked them — why are you paying so many of these?  Don’t you contract this service out?  Their answer left me speechless.

They told me that they had submitted one claim several years ago and the contractor did not pay it, so they felt it wasn’t worth the hassle to submit them.

One Does Not Make A Trend

First, one claim does not set a trend nor does it mean that your experience with the process is the norm.  Circumstances around the claim are always the deciding factor in the claim payment. What caused one claim may not be the cause of another. While I am not advocating filing claims frivolously, I am advocating that you should pursue the claims process, subrogation efforts, and speak with your contractors when claims are filed against you.  Hiding your head in the sand does not help you, your organization or your contractors avoid the problem in the future.

After investigating the contractor’s claim’s processing, I discovered that the have a 50-50 track record of paying the claims.  50% are paid and the other 50% are denied for other reasons, mainly one small requirement in the contract.  Just think, that prospective client could have saved $150,000+ just for tendering the claims to their contractor.


Hope you enjoyed this article.  If you need more personalized assistance, you can work directly with us.  Reach out here. http://wilmes.co/contact-wilmes-risk-control/

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