Most states’ law requires that every employer provide Workers’ Compensation insurance for its employees. This insurance provides coverage for accidents or disease arising from employment, as prescribed by these state laws. Benefits can include lost wages, medical expenses and permanent disfigurement / disability payments.
Below is a list of common Workers’ Compensation Programs:
A policy that is not subject to premium adjustment due to losses that occur during the policy term. The only variable affecting premiums is payroll by employee classification.
Improves cash flow by eliminating large deposit premium payments, and automatically calculates premiums based on actual payroll data. This helps to minimize the potential for year-end audit adjustments.
When an employer is qualified to meet certain state-mandated requirements, it may choose to self-insure its workers’ compensation obligations. This requires pre-approval from the state agency that regulates workers’ compensation. When an employer becomes self-insured, it assumes all the financial and administrative obligations that would otherwise be handled by an insurance company. Those would include, but not be limited to, claims administration, the actual payment of the claims and the purchase of excess workers’ compensation insurance. Generally, employers will hire a Third Party Administrator (TPA) and agent to handle all aspects of the self-insurance program.
An excess insurance policy is written to indemnify the self-insured employer for workers’ compensation claims (and employers’ liability claims) exceeding a designated dollar amount (self-insured retention or SIR). The excess workers’ compensation insurance covers all workers’ compensation losses up to a specified cap (aggregate limit), or it can be unlimited.
A policy plan that makes an adjustment to premium after policy expiration, based on losses generated during the policy period. The adjustment can go up or down, within set parameters, based on the losses generated during the policy period.