The importance of independent third-party incident reporting in the risk management of maltreatment occurrences and reducing an organization’s total cost of risk.
The lack of reporting for maltreatment occurrences can significantly contribute to costly insured and uninsured claims. Implementing an independent third-party mechanism for reporting maltreatment occurrences can greatly reduce pre-loss and post loss costs associated with maltreatment occurrences and claims. Consider the following: Delayed Discovery: When a maltreatment occurrence goes unreported or reporting is delayed, the frequency and severity of the maltreatment (abuse or neglect) may escalate. The longer the issue persists, the more severe the harm, leading to higher medical and legal settlement costs, higher insurance premiums, restrictions or exclusion of insurance coverage and exposure to uninsured expenses. Insurers and insured organizations often face larger claims once the issue eventually comes to light. Increased Liability: In cases where organizations or care providers fail to report maltreatment, they may be seen as neglecting their duty to protect vulnerable individual
