5 Key Terms in First Notice of Loss Operations

Posted on

August 17th, 2016


shutterstock_306793247 - CopyThere several important terms when discussing first notice – some may seem esoteric, others mundane. But understanding their full meaning and method of execution can dramatically improve business operations for organizations of all shapes and sizes. A positive FNOL interaction is key to successful business operations – from client relationship management to risk reduction.
1. First Notice of Loss (FNOL) – The initial report of a claim or incident resulting in loss of an insured product. A crucial element of insurance coverage. This discipline and its various constituents is now dependent upon a vast array of technologies, from data management and communications software to social media awareness and forensics.
2. Claim Intake – The initial interaction between claimant and professionally trained personnel – a critical step in the FNOL process.
3. First Report of Injury – The initial report of a claim or incident resulting in injury to an employee. A employer practice required by law.
4. Claim Handling/Claim Management – The conveyance of an insurance-related claim through a system of communication and investigation to ascertain the appropriate compensation. The more adept and timely the claim management, the less shrink for insurers and the higher satisfaction for clients.
5. Incident Reporting – A system of documentation for FNOL in which specific details must be thoroughly recorded to ensure proper claim management. Well-trained personnel and a modern, sophisticated incident reporting medium significantly reduce costs due to slow resolution, shrink, and other organizational issues.
There are other components of FNOL, but familiarity with these 5 key terms will illuminate much of our industry and its purpose. To learn more, contact us.