All employers should carry some form of workers’ compensation. Workers’ compensation protects your business and your staff in the case of injuries or illness. If you want a lower-cost option that rewards you for fewer claims, you may want to consider a loss sensitive program.
Enhanced Cash Flow
When you have a loss sensitive workers comp’ program, you are more likely to save money on the policy. Your premium is dependent on your loss performance, which means that you may not have to make complete payment upfront. Instead, you may not receive the final bill for years. With the reduced costs, you may experience improved cash flow.
While it is normal for most companies to reduce risks when they have a workers’ compensation program, they are more likely to focus on risk mitigation when they share some of the risks. With this type of workers’ compensation policy, you and the insurer share risk. When employers face a penalty for injury claims, they may create better safety programs and risk mitigation plans. When you have a focus on risk mitigation, you may even reduce the severity of the injuries.
When you own a business, your staff’s safety and health should be one of your priorities. If you want a workers’ compensation program that could benefit you and your staff, then you may want to look into loss sensitive programs.