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Indemnity Claim – Workers Comp


Term Of The Day – Indemnity Claim

An Indemnity Claim is a part of insurance contracts in which the insurer agrees to cover the cost of losses suffered by the insured. These claims included medical payments and payment for lost time by the injured worker, including lost weekly wages and permanency.

Most insurance contracts use Indemnity Claims, except personal accident and life insurance policies. In most of the claims, the injured party will have claimed more than three days of total or partial disability.

Graphic Of Hand Indemnity Claim With Piggy Bank

NCCI says that Temporary Total Disability indemnity benefits are provided to injured workers to replace wages, and other specified costs like vocational rehab, while the injured party recovers from a work-related injury or illness and is not able to work. The claim lasts the number of compensated days of lost wages. The current average TTD duration is 125 days.

This part of a Workers Comp claim is much more controllable in most instances than the medical portion of the claim.  Twenty years ago, the medical portion of a WC claim was less than the indemnity claim.   Now the indemnity benefits are 40% or less of a claim’s total value. The reduction in the % comes from medical inflation,


Related: Workers Comp Indemnity Reserves Basic Definition

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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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