How does Return-to-Work Impact Incurred Losses

Incurred losses are the total potential costs of the claim. They are the amounts which have been paid-to-date for medical expenses and lost-wages plus amounts reserved for future medical and lost-wages on each claim. Also, added to this calculation is the cost of the direct expenses for each file. With a fully developed and well-managed transitional duty program, you can significantly reduce your workers' compensation losses. When an adjuster sets reserves they have latitude in the range they use. If, for example, a company has an aggressive transitional duty program, the adjuster can set the reserve lower for an indemnity claim than for a similar company which does not have an effective transitional duty program. The adjuster anticipates a longer time out of work and, therefore, more lost wage payments at the company without an aggressive transitional duty program. Money for reserves is not just theoretical – it is actually paid to the insurance company – thus has bottom line implications. For more cost savings tips go to WC Cost Reduction Tips. Show the REAL cost of workers comp with the Real Cost Calculator. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com