Workers comp cost breakdown
Does anyone know what the cost breakdown looks like for the average workers comp claim? I found this NSC article that documents the average workers comp claim is around $40k (though the data is a few years older). Curious to know where that money goes. Here is a link to the article: https://injuryfacts.nsc.org/work/costs/workers-compensation-costs/
Comments (3)
*Disclaimer: Not a workers' comp expert*
From my experience reviewing cases, the total incurred cost is the combination of both direct medical expenses and indirect wage and administrative costs. For example, you are injured on the job and cannot perform your duty for X weeks while you recover. The direct costs are the medical costs associated with the broken/strained/sprained body part. The indirect are the wages for the X weeks the employee was recovering and any additional administrative fees (usually not much, but they are there).
I encourage everyone to look at loss runs at their current employer. There’s so much data, and it helps to understand the bigger picture.
Thanks for posting. Some folks may ask for more recent data and it's worth noting that many of these claims can take years to close out.