Every company has to have a workers’ compensation policy if they have employees. However, not all plans are the same. There are a few key ways you can save money on your workers’ comp plan such as self-insurance.
One of the ways insurance premiums are calculated is by the number of incidents or claims filed by the company. The fewer incidents reported, the fewer claims made, the less money spent on meeting those claims. This all means less money for the business to pay. One way to lower incidents is by establishing an effective risk management program including an employee safety manual and training.
According to Caitlin Morgan Insurance Services, self-insurance can help reduce costs on a worker’s compensation policy. This alternative to the traditional allows the company to use a special reserve fund or operation cash balances to pay out claims. The policy gives the company greater control over its policy.
Above all, you want to make sure you have the right coverage for your business. The wrong coverage could end up costing you more money than the premium price of a different policy.
Not all workers’ compensation plans are created equal. A self-insurance program may be the right policy for your business.