Blog Section

Will Your Business Save With Self-Insured Workers’ Comp?

Will Your Business Save With Self-Insured Workers’ Comp?

Self-insurance has long been an option for cost savings, but not every business benefits from using it for every insurance need. When it comes to self insured workers comp, there are a lot of ways to save, but companies that have a high risk of excessively large payouts or large quantities of claims should tread carefully. If neither of those descriptions fit your business, then you can probably expect to save. The question is how much, and the answer is based on your company's claim behavior each year.

  • Pay as you go costs rather than expensive premiums with mandatory due dates
  • Lower administrative costs than an outsourced policy
  • You do not pay for an insurance provider's profit margin

The key to understanding whether these three points will save you money and make the switch worthwhile is an assessment by an industry professional with the skills and experience to help you build your self-insurance program.

Finding Self-Insurance Setup Assistance

Just as there are professionals who specialize in selling insurance, there are experienced industry pros who focus on helping companies set up self-insured workers comp programs. Look for people with experience in this specific kind of self-insurance to get the best assessment of your potential risks and savings. You might also learn about other cost control options like group captive insurers that could work if direct self-insurance does not, so keep your mind open to new options.