How much money does second injury fund recovery involve?
The laws vary significantly from state to state. In New York State, for example, the average second injury recovery claim results in approximately $40,000 of initial retrospective recovery and $300,000 of future recoveries. For an Insurance Company or Self-Insured Employer, such future recoveries allow for an immediate reserve reduction. In New York, roughly 12% of all long term workers’ compensation claims should result in a second injury fund recovery. Thus, of every 100 long term workers’ compensation claims in New York, there is potential for approximately $480,000 in initial retrospective recoveries, and $3,600,000 in future recoveries and reserve reductions.
