Large-deductible workers comp plans are gaining popularity among a variety of businesses. These trendy plans have benefits for businesses but can also carry significant risk. If you are considering a large-deductible plan, it is important to research how these plans work in your area.
Benefits of Having a Large Deductible
The primary benefit of carrying a workers compensation policy with a large deductible is that doing so allows you to pay lower monthly premiums. By lowering your business’s monthly expenses, you free up more capital that can be invested elsewhere to grow your business and make you more money. If you choose to carry a large deductible policy, it is wise to have money set aside in the event that an employee files a claim and you need to meet that deductible.
Plans Can Vary Considerably
Because insurance laws vary from state to state, there are many different kinds of large-deductible workers comp plans available. Each plan has different deductibles and can cover very different things. It is best to research the plans available to you thoroughly before deciding whether this kind of insurance policy is the best solution for you and your business. As you do your research, be sure to work closely with insurance companies who are familiar with large-deductible policies and can best council you about how these policies will or will not help you realize your business goals.