Ask any large employee what the biggest business challenge they face is and most will likely tell you managing regulations across multiple states. As a financial services business, insurance carriers and products are highly regulated, on both the federal level and the individual state level. Since workers’ compensation is among business insurance requirements on both the federal and state level, and those state-level regulations can vary, things can get complicated quickly.
Employers can get some breathing room and a little peace of mind is by investing in a large deductible workers’ comp plan. These are different from guaranteed cost workers’ comp plans, which are hampered by all those varied regulations.
What Makes Large Deductible Workers’ Comp Plans Different
Businesses used to the structure of guaranteed cost plans should feel comfortable with the large deductible plans, since they operate similarly. The biggest difference between the two may be the special deductible endorsement the large deductible plan carries. That endorsement typically ranges between $100,000 and $1 million per case.
The high deductible might scare some employers off, but it should not. As long as the insurer can show that it can manage the deductible, it will pick up ancillary benefits Insurers will handle the employer’s complete claims management process across multiple states, for example. The business can operate as if it is self-insured, reaping the benefit of both tax savings and better cash flow management.