How to Know If Your Business Needs Excess Workers Compensation

Workers Compensation

All businesses with employees must protect their employees with workers’ compensation. This insurance steps in to help provide the medical care, wage losses and funeral expenses should the employee fall, become sick or die while on the job. Here’s how to know if you need excess workers comp insurance.

Plan Benefits

As seen on www.caitlin-morgan.com/, the excess workers’ compensation offers businesses with creative solutions and flexible options for coverage. This can help self-insured businesses better care for their employees while protecting their bottom line.

Self-Insured Reasons

This workers’ comp plan is mainly a benefit for those who are self-insured. Many businesses choose this route in order to better control their claims and cash flow. In many cases, by self-insuring their workers’ comp plans, businesses can save money on premiums. Businesses who incorporate effective risk management plans may benefit from using a self-insured plan.

Business Qualifications

Not all states allow businesses to have a self-insured plan, which means those states also do not qualify for the excess plan. Companies that can and choose to operate a self-funded plan must apply through the state’s regulatory agency for approval. Each state has different qualification standards.

There are many moving pieces to a self-funded workers’ compensation plan. If your business uses this cost-saving policy, you may benefit from an excess workers comp policy.

4 Reasons to Choose Self Insured Workers Compensation

Caitlin Morgan Insurance Services

The vast majority of businesses must have worker’s compensation insurance for their employees. However, the business does not have to have a specific policy. There are four reasons a company may decide to choose self-insured workers’ compensation.

Control

Some companies want to manage risk using a proactive approach. These companies tend to want to control more aspects such as insurance claims. Self-insured workers’ compensation policies give that control to businesses rather than an insurance company.

Cost

The experts at Caitlin Morgan Insurance Services state that a company must meet the obligation of paying out workers’ compensation claims. Companies who have the financial resources and do not want the insurance carrier to keep what is not spent may benefit from a self-insured policy.

Experience

Some companies have good claims experience and do not need an insurance company to take on that task. Using this experience can save the business money on premiums.

Process

Not all insurance companies manage claims the way a business would like. When this happens, a company may decide to change policies to better manage their own claims. A self-insured policy gives the business more involved in the overall process than it otherwise would have.

Self-insured workers’ compensation policies are not for all companies. There are many reasons to choose a more traditional plan. The business must evaluate both and decide for itself.