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.

Fully Insured

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

Self Insurance

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!