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What Type of Workers Comp Does Your Business Need?

Workers Compensation is a compulsory insurance that employers are required to procure as per state legislature.

State governments require business employers to provide the following coverage for employees:

  • Medical Care
  • Disability Benefits
  • Lost wages for workers that are injured/disabled while on the job

The self-insured Workers Comp Program Option

For employers that wish to have the flexibility in cost-control as well as the ability to provide injured employees with immediate appropriate medical attention, a self-insured Workers Comp program may be an alternative that is worthy of consideration. Also referred to as a self-funded plan, the self-insured program is a viable option in most states and lets employers pay for each claim as they occur as an out-of-pocket expense instead of paying into a fixed commercial insurance premium or state fund policy.  


To qualify, business owners must:

  • Operate within a state that approves the program
  • Meet credit worthiness criteria
  • Register as a self-insurer
  • Post a bond that guarantees every claim will be paid

What’s the down side of this program? Since no one can predict how many claims workers will submit and the possibility of catastrophic costs, employers run the risk of an inability to meet the potential expense level. For this reason, insurance companies offer Workers Compensation Excess Insurance.

Workers Compensation Excess Insurance – a definition

After the initial qualification process, an employer can procure this excess insurance to reimburse above an agreed upon dollar amount. Extra options, such as claims handling, loss control and other maintenance services, are available as well.

For more information about Workers Comp, Workers Comp Excess and related Bonds, contact an independent experienced insurance agency.


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Summary: For the employer that wants another option to the standard Workers Comp program, this guide on a self-insured option can open doors.


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