Posted: Tuesday, July 7, 2009 by Jeff Slusser
Like it or not, you pay for injuries. The insurance companies just finances them. In fact, on less severe claim, you will pay them back through an increase in premium 100% up to over 250%! They simply cover the initial costs of the claim so it’s impact on your company is not all at once. The total incurred cost of the claim, total paid & total reserves, are then included in the calculation of your experience mod, which will increase or decrease based up on the costs & type of the claims.
Insurance / Workers Compensation