If you are considering doing self-insurance for your workers compensation coverage there are a few things you need to consider. By self-insuring your company is taking on all of the financial risk of workers compensation insurance and providing the benefits to your employees. What this means in financial terms is that instead of paying a set premium to an insurance company you are paying each workers compensation claim out of pocket.
Before you make the final decision to do self-insurance for your workers compensation coverage, consider why you are doing it. Many employers make the decision to self-insure because they want more control over the costs. It also gives them more control so their employees are treated in a timely manner and given the care they require.
You will also want to look at the number of workers compensation claims that your company usually incurs. If you should choose to self-insure you will likely also want to have some kind of risk management in place as well. This can be either in-house or outsourced to a third party. Having risk management in place could help to lower the number of claims that are made.
Deciding to do self-insurance for your workers compensation coverage is a big step and something you may want to discuss with an insurance agent. There are things you can do that will protect your company from a catastrophic claim putting your company in financial jeopardy. Visit our website to get more info on this subject.