 
Health Insurance California >> Worker’s Compensation >> Workers Compensation Loss Reserve and Surcharge Workers Compensation Loss Reserve and Surcharge Loss reserve A loss reserve is a predictable amount of money, which the insurance company sets aside to pay for a claim. Loss reserves are used to appraise the worth of every insurance claim, based upon the claims adjustor’s judgment and experience in handling few similar insurance claims and the potential for insurance claims payment. Insurers are necessary by law and WCIRB rules to establish these reserves for incurred insurance claims. Workers compensation surcharge An insurance company might surcharge insurance
premium if it believes that additional money is needed to meet the
expected losses and expenses for a particular employer. Consumers need
to ask the insurer to provide formal documentation that reflects all the
rating components used to develop their insurance premium. Surcharges
are generally applied only on to high-risk activities with a higher-than-average
loss potential.
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