Claims Are Won or Lost at Birth: Why You Must Get It Right from the Start
In the world of risk management, claims are inevitable—but how they are handled from the moment they arise can make all the difference. We often say that a claim must be “born right” because the initial response sets the tone for the entire lifecycle of the claim.
Whether it’s a property loss, a workers’ compensation injury, or a complex construction defect allegation, how an organization reacts in the first hours or days following an incident directly affects the outcome—financially, legally, and reputationally.
So, what does it mean for a claim to be born right?
1. Immediate Incident Response
The first step is timely notification. Delays in reporting a claim can result in lost evidence, compromised witness recollection, and even policy coverage issues. Risk managers should ensure that everyone in the organization knows how and when to report an incident—and that there’s a clear protocol in place.
2. Documentation is Everything
From photos and statements to incident reports and contracts, early documentation creates the factual foundation on which the entire claim will stand. When documentation is incomplete or inconsistent, it opens the door to dispute and delay.
3. Control the Narrative
The initial incident report is often the version that insurers, legal teams, and regulators refer back to. Make sure it’s accurate, objective, and complete. Letting others define what happened—especially third parties—can put your organization at a disadvantage.
4. Coverage Review
A well-“born” claim includes an immediate review of the applicable insurance policies. Risk managers should be looped in early to ensure the claim is routed to the correct carrier and policy year, and that notice provisions are satisfied. This avoids coverage denials due to technicalities.
5. Coordination with Stakeholders
Risk management should serve as the central hub, coordinating between internal teams (legal, HR, operations) and external partners (brokers, insurers, counsel). When this coordination is missing, claims can spiral quickly.
6. Preserve Trust with Insurers
How you handle claims affects more than the outcome—it affects your reputation with carriers. When insurers see that your organization takes claims seriously, reports them promptly, and provides the right documentation, it can improve claims outcomes, reduce reserves, and ultimately lower premiums over time.
A claim that’s “born wrong” is hard to fix. But when risk management is embedded in the process from day one, organizations can significantly improve the outcome. It’s not just about protecting the bottom line—it’s about protecting your people, your assets, and your reputation.
At The ALS Group, we help clients develop proactive claims protocols, conduct post-loss reviews, and serve as advocates throughout the process.
If you need help with your claims management or have any other risk or insurance related questions, please contact our Managing Principal, Albert Sica at asica@thealsgroup.com or at 732.395.4251.
