Mid-market employers face challenges when it comes to buying and implementing affordable workers compensation insurance. While larger employers may have options to self-insure or to opt for high deductible plans, smaller companies often lack the capital or fail to meet the state requirements to take advantage of these kinds of choices. Through captive programs, however, a good workers compensation insurance broker can provide mid-market employers with alternatives that help stem the cost of providing wage loss and medical benefits for injured employees.
Group captive insurance programs allow employers to pool their workers compensation risks and premiums with other companies. A cooperative structure distributes the financial responsibility across its members. This approach makes it possible for companies to cover themselves outside of the traditional guaranteed cost market, while avoiding the need to provide the collateral that might be difficult for a single smaller company to provide.
Advantages and Opportunities
One of the benefits of a group captive plan is that dividends are paid to members when and if claim costs fall below premiums paid. A workers compensation insurance broker will have the resources to help implement safety programs and offer consulting services to improve a company’s workers compensation loss experience. A group captive program may be the solution for mid-market businesses seeking the same kinds of cost control and care management solutions available to the bigger players.