Taking out a sensible insurance plan is crucial when it comes to protecting your employees. The right package for workers’ compensation, for example, can make all the difference. While you want to do what’s best for the people who work for you, it is also important to consider the costs involved. There are going to come times when your business cannot afford all of the fees and costs associated with traditional insurance packages. This is where a self-insurance approach can be useful.
The Advantages of Self Insuring
The biggest benefit of self insuring workers comp is the control it offers employers. This plan usually includes fixed costs at a lower rate than normal, which can be very useful for organizations working on a tight budget. Beyond this, you’ll have more control when it comes to the claims that are made. If loss prevention is a top priority for you moving into the future, this type of insurance can help you work toward that goal. The other advantages to this type of insurance structure include:
- Pay-as-you-go options that help maximize cash flow
- Claims are paid when they occur, rather than in advance
- Mitigation of losses through better cash management
Research the Alternatives
An alternative approach to insurance can often provide employers with options that they did not know existed. Do what’s best by your employees and your business by taking a look at how self-insurance policies work and whether your business qualifies for the option.