Getting the best coverage for your employees goes without saying. However, businesses still have options when investigating policies. There are quite a few differences between workers’ compensation self-insured vs fully insured programs, and knowing which to choose will help not only your company but your staff as well.
Having complete workers’ compensation insurance allows employers to take a hands-off approach when it comes to claims. By paying a monthly premium, the insurance company takes charge when situations occur and handle the case and payout all expenditures, with several benefits including:
- Less risk: The insurance company takes on the expenditure burden
- Lower admin costs: These additional fees are incorporated into the premium
- Price of entry: These plans work well for businesses that don’t have a lot of spare capital for claims
Also called a self-funded plan, these policies have the employer take on the financial risk of claims. Each claim is paid out-of-pocket as situations arise, offering a few benefits that businesses can capitalize on.
- Possible cost savings: No premiums mean lower annual costs
- Potentially safer workplace: A business is more likely to focus on safety if workers’ claims are handled in-house
- Quicker settlements: With no middle man, settlements are streamlined.
According to Caitlin Morgan Insurance, self-funded plans are an excellent option for companies that have a higher cash-flow for expenditures. When choosing a plan, make sure you keep these possible savings and expenditures in mind!