There are several points to keep in mind when you’re selecting the right insurance plan for your business. When it comes to key areas of your coverage like workers’ compensation, it can be useful to give yourself room to understand all of the options available to you. The traditional path may not be the best fit for your needs. Take a moment to review the details surrounding an alternative like self-insured workers’ comp and see whether or not this is an appropriate fit for your company.
The Main Points
The main point to understand when it comes to self insurer for workers compensation is that it differs from the standard approach to compensation. Self-insured compensation creates a more direct arrangement between the policy and the policyholder by removing a third party from the equation. Instead of a third party covering the costs associated with claims, the employer will pay out of his or her own pocket. It is typically the best choice when you want more control over your policy and can handle the costs. Advantages of this type of policy option can include:
- No need to pay premiums to a third party
- More options in how plans are structured
- Access to group insurance plans
An Alternative To Consider
While the traditional path of selecting workers’ compensation is the best choice for most employers, it is important to know all the options available to you. Review the details surrounding self-insured compensation policies and determine if it makes sense for your future.