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Total Incurred Definition – Basic But Important Workers Comp Term


Total Incurred Definition Has Two Variables

The Total Incurred definition is the funds that have already been paid out + the Reserves on the file.

Picture of Calculator Total Incurred Bills

The E-Mod is calculated using Total Incurred as one of the main items. The Paid part can rarely be adjusted. The Reserves, however, can be negotiated.


Update – This is an older article.  Leakage audits on concerning the accuracy of the file payments can now be analyzed.  We have partnered with two different firms that can provide leakage audit services.

The two parts of the Total Incurred are

  • Indemnity Payments/Reserves
  • Medical Payments/Reserves

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

Insurance carriers and Third Party Administrators sometimes have different labels on the Paid, Reserve, and Total columns.  They can be confusing.  If you have any questions on your loss runs, you should call your insurance carrier or TPA and ask any questions about your loss run.

There is no standard loss run.  No state insurance department or rating bureau requires a certain form for the losses to be reported to the employer.

One of the most important things to remember is that on the loss runs the total incurred is the sum of the Indemnity,  Medical, and Expense figures.  However, you have to subtract out the expense figure to match it to the Rating Bureau Worksheets.

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

Next Up – Reserves – The Secret Budget Buster

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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