State laws require employers to carry worker’s compensation coverage in most cases. For larger companies or those operating within certain industries, that can add up to a considerable expense. Group self insurance options have evolved and are an attractive choice for many of these companies. Keep these three things in mind if you consider self-insured workers comp for your business.
1. It Can Save Money Over Time
Self-insurance can be a great way to help keep costs under control in certain circumstances. Instead of paying a monthly premium, you are responsible for the costs arising from claims as they occur. For groups, you may also be responsible for claims belonging to other members.
2. It Gives Control for Claims to Your Company
By acting as your own insurer, you regain a greater amount of control. You decide how claims and adjustments are handled on an individual basis. That can speed the claims process along and improve the care employees receive after an injury. This remains true in a group setting.
3. Self Insurance Is Not Right for Everyone
It requires substantial financial resources. You will need to pay any claims that arise, which can be a financial strain if you face claims right away, a substantial single claim, or multiple simultaneous or overlapping claims.
Group programs mitigate many of the risks associated with self insured workers comp while harnessing the benefits. That has made them an increasingly attractive option for business insurance needs.