Protecting your employees can often be a very complicated process. For business owners, the most practical decision to make is to offer a sensible plan for workers’ compensation. Should a member of your team become injured or ill while on the job, the right policy can make a world of difference in shielding you and your workers from harm. Naturally, there are a handful of options you should review before deciding on the best plan for your needs.
The Key Differences
One of the main points to consider with your workers’ compensation plan is guaranteed cost vs. loss-sensitive plans. Essentially, the main difference between these two policy options is in how losses are handled. A guaranteed cost plan is the more traditional arrangement that business owners are familiar with. A plan that has a structure for loss-sensitive needs will offer a few options when the policy is audited when it comes to an end. Weigh out the pros and cons of each to determine which is right for your needs. Factors to consider when making your decision include:
•Industry risks
•Current budget
•Frequency of claims
Learn the Basics
By taking time to understand more about the workers’ compensation plan options before you, it will be much easier for you to select a policy that fits the needs of your business. Look into both guaranteed cost and loss-sensitive plans to gain more perspective on the matter.