What can estimates of future liability never be reduced by, unless there is an Order of Credit?

Estimates of future liability are essential for accurately assessing the financial obligations associated with workers' compensation claims. They are projections of the costs that may arise over the life of a claim. In most scenarios, these estimates can be influenced or reduced by various factors, but the ability to offset them through certain sources is not always permissible without specific legal circumstances.

Third-party recoveries refer to any funds that a worker might receive from a lawsuit against another party responsible for their injury, apart from their employer's workers' compensation liability. Unless there is an Order of Credit, meaning a legal directive allowing for the reduction of the employer’s liability based on those third-party recoveries, the estimates of future liability must remain intact. This is crucial because it ensures that the workers’ compensation system does not double indemnify the injured employee while also shielding the employer from being unfairly burdened.

In contrast, employee contributions, insurance premiums, and legal fees may have distinct implications for claims but do not fall under the same restrictions regarding future liability estimates. Therefore, these types of deductions or adjustments are generally permissible without requiring an Order of Credit, distinguishing them fundamentally from third-party recoveries.