Insuring Against Employee Accidents
State and federal regulations have a lot to do with the employee benefits packages offered by major businesses, but for the small business owner or those who are self-employed, the requirements and how to meet that can be a little fuzzier. When it comes to self-insured workers comp, this plan has an employer assuming the cost of providing traditional workers compensation benefits to their employees. This policy would be considered an alternative to workers comp and has the employer paying the cost of each individual claim as an out-of-pocket expense. This differs from traditional workers’ comp plans where a company pays a fixed premium to a provider or to a state-sponsored fund designated for workers comp payouts.
The professionals at Caitlin Morgan Insurance Services identify three primary benefits that an employer can gain from using a self-insured worker’s compensation plan. These include:
- A more cost-effective approach than traditional plans
- Increased control over the claims programs
- Improved safety and loss control management
Not every employer will qualify for this type of insurance coverage, and an application must be filed with the applicable state regulatory agency. The requirement and approval process can vary by state, so it is best to look at your specific criteria before assuming coverage legibility. Typical requirements involve a variety of supporting documents and proof of financial information.