Businesses looking for places to save may reevaluate their workers’ compensation plan and consider opting for a large deductible workers compensation plan. Before you move to this plan, assuming that the lower premiums will result in ultimate savings, there are some fine print issues to consider.
Hidden Allocated Loss Expenses
When you choose a large deductible plan, you need to verify the allocated loss expenses like legal fees are included in your deductible, and whether the provider accurately represents these costs when considering your deductible expenses. ALE are often opaque expenses that are difficult for the policy holder to verify, so it is important to shop around and get reviews on providers. Otherwise, you could wind up paying more fore your large deductible plan than you would have for one with higher premiums and lower deductibles.
Your Loss Prevention Plan
To truly reap the benefits of a large deductible plan your company has to have an excellent loss prevention plan in place. Make sure your written safety management plan is up-to-date. Incorporate annual safety trainings and check with your insurer for other steps you can take to mitigate risk.
Safety is part of company culture. If your company talks safety without taking the time for safety or enforcing safety, a large deductible plan won’t provide the savings you need.