The process of determining claims’ settlements may appear to be a strange and challenging undertaking to individuals who are not familiar with the process. On the other hand, the procedure may and should be open and honest, as well as helpful to all involved parties when it is carried out correctly.
This article will brief you on what to anticipate if your company has hired Sedgwick to handle your workers’ comp claim. And how to get the most out of workers comp claim with Sedgwick compensation settlement.
Risk managers ensure those with settlement responsibility understand the process’ mission-critical but delicate intricacies. To secure the necessary settlement authority inside the company, the risk manager must communicate the facts known to support the calculation. Risk managers can get help from their trusted and skilled claims administrators. With the proper partner, they’re not alone during this settlement phase.
Based on law
Payouts for workplace injuries are determined following each state’s workers’ compensation rules and regulations. The method was created to:
- Reasonably determine risks;
- Find the expected settlement range;
- Successfully obtain settlement authority;
- Tell the person who will be negotiating the settlement that they have the authority to do so (and that they have a good case)
- Don’t let anyone off the hook for their part in this
While these goals appear apparent to industry professionals, firm leadership and others have little experience or awareness of the purposes or mechanisms, making process improvement activities difficult. Consequently, it is essential to make sure that everyone who has to know does know the benefits of a solid settlement calculation procedure, such as:
-Avoiding litigation costs
-Reducing litigation vagaries;
-Administration and benefits cost management.
Examining the qualities (strengths and weaknesses) and the cost of a settlement with an eye toward realism is also crucial. Unfortunately, that’s not always a straightforward procedure. In the case of an injury, for instance, there may be conclusive medical records and studies that pinpoint the root cause and estimated recovery time. However, there could be discrepancies in the data regarding the severity and length of the injury, which would make precise calculations difficult.
The dilemma of whether or not to sue
When calculating settlements, you must answer a fundamental issue at some point. That question is as follows: What are the likely consequences of going to trial instead of settling?
Nowadays, courts only hear a minority of cases. It’s not done often and only if doctors have serious disagreements about the extent of an injured worker’s future handicap or other concerns that cast doubt on whether or not the condition qualifies for workers’ comp.
Again, risk managers can rely on their claims administrator to give the information they need to answer these questions based on the thousands of claims and decades of expertise they have amassed.
Reaching that “Aha!” point
Every department benefits when executives know the advantages of enhancing the claims settlement calculation process.
Risk managers can collaborate with reliable claims administrators to provide valuable feedback and insights. Doing so requires more than saying, “this claim is closed.” The purpose is to give examiners, leaders, and anyone else who needs to know the “aha moment” that will help them fully grasp the significance of every component of the claims settlement process.