Workers' comp file documentation became very critical in the post-pandemic area. One area for adjusters that seems to have become almost the norm is copy and pasting the same info from note to note.

James Moore

In our reserve, claim and premium audit reviews, we often see certain trends or patterns — some good, some not so good. I am referring to real examples, not just a theory.

Why more critical?

The number of workers' compensation files has been reducing over the years. I covered this info many times since 2007. WCRI, NCCI, WCIRB and all the other companies that analyze workers' comp data have said the number of claims has reduced over time.

The counterbalance of that reduction consists of claim values increasing with claims open longer every year. Claims are becoming more complex while the volume falls consistently. Check out this article on claim volume reduction.

Old-dog claims

Claims are open longer with multiple adjusters working the file over time. Working “old-dog” claims usually means having to review them from one or many years ago to the present. Copying certain info from month-to-month status reports may mean a few things are missed along the way, including subrogation. 

Once a new adjuster sees that a prior adjuster has used copied-and-pasted file documentation, the more likely he will just use the current file status and work from there, possibly missing old file developments.

Many adjusters now work remotely, so fresh documentation becomes critical for anyone looking at the file or an associated loss run.

File documentation during reserve increases

Claims supervisors, managers, VPs, etc., can see this info quickly when reviewing file status. The reserve increases usually generate the most reviews of a file. Copy-and-paste documentation becomes a glaring issue.

Yes, some of the file developments never change for weeks. Some Copy-and-paste documentation remains acceptable.

Bottom line

When the action plan on how to push the file along to closure looks the same each time,  the file looks as if it is not being worked on, just maintained.

How do you know this info? I have reviewed hundreds of files for agents, insureds, carriers and third-party administrators. I have PDFs of workers' comp file documentation sitting on my desktop as I write this article.

I do not want to seem like a critic, but more as an adviser of what I have seen overall.

This blog post is provided by James Moore, AIC, MBA, ChFC, ARM, and is republished with permission from J&L Risk Management Consultants. Visit the full website at www.cutcompcosts.com.