Worst Case Scenario - These words send chills through me like no others in anything that deals with Workers' Comp. I did not like to say them when I was an adjuster long ago, and I do not like to hear them now.

Worst Case Scenario has to do with the reserving on your Workers Comp claims. In my last post I pointed out that 16 East Coast hurricanes were originally forecasted for 2006 by one of the large Risk Management companies. That was the Worst Case Scenario. Companies were charged property premiums as if the end of the world was going to occur in 2006. The premiums have been reduced some by the later forecasts of very few storms.

However, in Workers Comp, worst case scenario seems to be the norm for every claim. How do you know if your company is being reserved at and charged for the worst case scenario on your Workers Compensation claims? That is coming in the next posting.

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