Is a Self-Insured Workers Compensation Program Right for Your Business?
There are many options out there when it comes to workers compensation programs, but finding the one that is right for your business can be difficult. One option that you may have heard of is the self-insured workers compensation program. This option is not for everyone, but it may be the perfect fit for your company’s needs.
What is Self-Insured Workers Compensation?
As the name implies, a self-insured workers compensation policy is one in which the employer is financially responsible for providing the workers comp benefits to its employees. This means that they pay for all claims out of the company funds instead of paying a monthly premium.
Whats the Advantage of a Self-Insurance Program?
A self-insurance program allows companies more control over the associated costs of paying out the benefits and can ensure that their employees receive adequate care in a timely manner. If a company has limited cash flow, it can be beneficial for it to save money on monthly premiums and only pay out when needed. This is especially true for companies operating in low-risk industries.
Before you consider opting for a self-insurance program, be sure to shop around and see what other workers compensation programs are out there. It is also important to note that some states do not allow this kind of policy.