If you’re the risk manager for your business, you are responsible for a variety of duties including protecting your company from financial failures. Your business is likely required to have worker’s compensation insurance. Depending on the size of your business, you may be able to purchase self-insurance instead. Your company will require you to assess this decision and make the best choice. It can be difficult to decide which to purchase. It may be a good idea to purchase excess workers compensation insurance. This can be extremely beneficial to your business.
Most businesses that are medium-sized have the ability to cover minimal worker’s compensation claims with their own resources. This may include small cuts, a sprained ankle or a minor slip and fall injury. If you think that your business has the resources to cover these small claims, you will want to consider self-insurance. This allows you to avoid paying costly premiums in turn for covering these claims on your own. This will not protect you from serious claims.
If you’re looking to save money, you probably don’t have the resources to pay for a big claim. Excess workers compensation insurance may be beneficial to your business. With this insurance, your policy will cover claims that exceed a certain amount. With this, you’re able to decide how much you’re willing to pay for a claim. If you decide to pay for up to $50,000, then the excess insurance will start covering costs over $50,000.
It’s important to work with an insurance agent so you fully understand your options and choose the best policy. With care, you can make valuable risk management decisions for your company.