Workers’ compensation claims have a variety of different costs associated with them. Some of these costs are expected costs, while others are unexpected. Here’s the difference between these terms:

• Expected costs are those that are covered
  by workers’ compensation insurance. Such
  expenses are commonly referred to as direct
  costs.
• Unexpected costs are those that workers’
  compensation insurance does not cover.
  These expenses are commonly referred to
  as indirect costs.

WCI – Direct and Indirect Workers’ Compensation Costs Explained