WORKERS COMPENSATION There are two components to workers compensation claims costs: payments for lost time (which are usually linked to a state’s average weekly wage), known as indemnity costs, and payments for medical care. In 2007 medical costs accounted for about 59 percent of total workers compensation losses; indemnity costs accounted for 41 percent, according to the National Council on Compensation Insurance.
WORKERS COMPENSATION INDEMNITY COSTS PER CLAIM, 1991-2007 (1) ($000)
(1) Indemnity costs per lost-time claim. 1991-2006: Based on data through 12/31/2006, developed to ultimate; based on the states where NCCI provides ratemaking services. Excludes the effects of deductible policies.
(2) Preliminary based on data valued as of 12/31/2007.
