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Acord 130 forms are used to capture information related to workers’ compensation in insurance policies. These standardized applications are requested by insurance carriers to determine the amount of compensation based on employee payrolls, loss history, and other details related to business operations. Filing claims can take days and insurance companies simply don’t have the time to process and sort through huge volumes of data. Replacing manual document processing, intelligent data extraction solutions are being used for Acord 130 forms processing. Insurance companies report a 43% automation potential when it comes to adopting these frameworks, and the industry is forecasted to grow at a CAGR of 5.3% between 2019 and 2023.
What is Acord 130?
Acord 130, also referred to as a Workers’ Compensation Policy Application, is a self-contained application form which is required to be filled up by employees to determine how much money they are to be compensated during unforeseen circumstances.
Businesses use Acord 130 to determine the rates of compensation, including amounts related to payroll, loss history, and the amount of coverage they get from insurance. A worker’s compensation insurance policy is designed to protect the interest of employees who are working in an organization and cover the cost of medical treatment, in the event any accidents or injuries take place.
Importance of Acord 130
Acord 130 forms add credibility to organizations since submitting them to agencies shows that businesses care about their employees. New employees who are joining the organization often request this to be reviewed before they sign up for work.
1. Global Collaboration
If a company wants to collaborate or partner with other businesses for providing various services, it will have to forward its Acord 130 applications. Acord 130 forms are needed for verification before doing business operations with multiple vendors within the country and beyond.
2. Legal Liability
Insurance agencies require companies to fill out and submit Acord 130 applications before enlisting new employees onto their payroll. Acord 130 forms are needed for employee onboarding and offboarding processes as well.
3. Workers’ Compensation
Acord 130 is used for determining how much to pay or compensate those who are working within an organization. The policy provides insurance coverage that protects the welfare of these members and ensures their medical costs are covered.
Disability, environmental hazards, physical injuries, and accidents at the workplace are common reasons employees may be unable to resume work. This is when an Acord 130 application comes into play by providing them various benefits.
How to read Acord 130
The National Council on Compensation Insurance (NCCI) establishes guidelines and laws about workers’ compensations which are to be followed by every organization. Acord 130 forms processing is done using intelligent data capture solutions which use smart machine learning algorithms to interpret these forms and input information into databases automatically.
Below are the major sections which are to be read:
· Agency Information
· Status of Submission
· Billing/Audit Information
· State Rating Worksheet
State rating worksheet contains information about business operation locations, class codes, worker classifications, and their responsibilities. There is a section dedicated to contact information and it does not have to be filled out if you are submitting your Acord 130 application with an Acord 125.
Business partners and employees outside the organization can be covered in the policy by adding details in the Individuals Included/Excluded section of the form.
How to automate Acord 130 Processing
Acord 130 forms follow a standardized format but can vary based on the information and details entered into them. Insurance agents can fill them out by hand but given the sheer volumes to process, automating Acord 130 processing using intelligent data capture solutions becomes important.
Optical Character Recognition (OCR) software works with Robotic Process Automation (RPA) tools that use pre-defined templates for filling out these forms. The unstructured content is sorted and details are inserted by labeling the fields using key-value pairs. Platforms like Docsumo use pre-trained APIs to learn from previous forms and update their Acord 130 processing models, thus getting smarter with every submission.
Features like smart filters and batch uploading make it convenient for users to upload multiple Acord 130 forms in one go. And after processing is done, the software lets them decide what format to export the data in.
Benefits of Automation
The benefits of using automated document extraction for Acord 130 form processing are clear – you save countless hours and don’t have to worry about making mistakes. Here is a list of the major ones:
1. Rapid Turnaround Times
No need to wait for hours to manually enter data. Docsumo lets you automatically fill up Acord 130 forms in seconds and updates AMS systems
2. High Precision and Accuracy
When you use automated document extraction to organize and manage Acord 130 forms, it results in accurate readings. The information entered gets validated by APIs and is fact-checked before getting approved.
3. Supports Multiple File Formats
You can convert your Acord 130 form to an Excel spreadsheet, JSON file, PDF, and other image formats. Send this to your insurance agents over email and they will enter into AMS systems.
4. Significant Cost Savings
Faster processing speeds, reduced downtimes, and improved customer satisfaction rates translated to reduced costs. It is much more cost-effective to digitize Acord 130 forms and store them electronically than opt for paper-based storage.
Are you ready to make your company the best place to work for your employees? Sign up for a free trial with Docsumo today and automate your Acord 130 forms management.