Examining your claim reserves can save money
Every Workers’ Comp claim is unique. Age, occupation, severity of injury, pre-existing conditions, etc. have a great influence on the expected outcome and, as a result, the claim reserve. While there are no official industry standards to determine a reserve, the reserve represents the adjusters opinion of the ultimate cost of the claim and is used in determining the cost of your Workers’ Comp.
In determining the costs of Workers’ Compensation incurred losses include not just what the insurance company has paid out for the claim, but also the reserves that the insurance company has established for the claim. For this reason, it’s important to closely examine all claims that have significant open reserves to determine if they are excessive.
By working with your Certified Work Comp Advisor, you can determine if the length of disability and suggested treatment plan are consistent with Evidenced Based Disability Guidelines. When there appears to be a discrepancy, a cooperative, congenial approach with the adjuster can be effective in reducing the reserve.