2 Benefits of Loss Sensitive Workers’ Compensation Insurance

With a loss sensitive workers’ compensation plan, an employer’s premiums are reflective of how safe the workplace actually is. Premiums will be lower when there are fewer incidences of loss, while they will be higher if the policy has to pay out for accidents on the job.

Spread Out the Risk

One of the primary benefits of loss sensitive workers comp insurance is that it allows you to spread the risk over time. A minimum premium is set and must be paid whether or not you have had any accidents in the workplace, but these premiums help to make the costs more manageable throughout the year. Additionally, some insurers will work with business owners to help establish protocols that reduce risk even further.

Incentivizing Workplace Safety

Because keeping premiums low for a loss-sensitive workers comp insurance plan is the goal, employers are further encouraged to keep the workplace safe and free from incidents of loss. Some businesses with this type of plan will also create incentives for the workers themselves, such as rewarding employees with a pizza party or other fun event when accidents are avoided for a certain period of time.

If you prefer to balance your insurance costs based on the likelihood and frequency of incidents in the workplace, this type of plan may be right for you.