Another Workers Comp Definition - This is one that I have posted about previously - Total Incurred - is the funds that have already been paid out + the Reserves on the file. The E-Mod is calculated using Total Incurred as one of the main items. The Paid part of Total Incurred can rarely be adjusted. The Reserves, however, can be negotiated. The three parts of the Total Incurred are

• Indemnity Payments/Reserves
• Medical Payments/Reserves
• Expense Indemnity/Reserves.

If you look at your NCCI or Rating Bureau Sheets, you will only see one loss figure as the Total Incurred is the total of the above three bullets.

I wanted to start with the Total Incurred, as I wanted to talk more about the Reserves part of the Total Incurred figure in the next post.

Next Up - Reserves - The Secret Budget Buster