Workers’ Compensation Options for Businesses

As a business owner, keeping your employees safe while they do their jobs is likely one of your biggest concerns. Carrying a worker’s compensation insurance policy is one of the best ways to do that. There are many types of policies out there, however. Some companies are even choosing to provide their own coverage. Here is a quick overview of the pros and cons of self insuring workers comp for your business.

The Pros

Self insuring workers comp can be a financially productive decision. Workers’ comp insurance policies can be expensive. Opting to forgo those pricy premiums and instead put the money into your own fund can help you save some cash each month. Just be sure that you are using a dedicated fund and carefully tracking the balance in the event that it’s needed.

The Cons

When you choose a self insuring workers comp option, you are taking on a potentially large logistical burden. Your company becomes solely responsible for ensuring your policies are in line with state and federal requirements. With an external policy, the work of writing the policy, processing claims, determining payouts, and keeping up with legal mandates belongs to the insurance company.

Whether you choose to self-insure or not, take the time to do your research. Make sure you are making the best financial and legal decision for your company and your employees.