Consider Deductibles on Your Workers’ Compensation

An Excerpt From My Book, Simmonds on Workers’ Compensation Insurance:

A deductible is the part of a claim you pay before the insurance company steps in. Put another way, a deductible is a way for you to retain a portion of the loss. The larger the deductible, the larger the premium savings.

Workers’ compensation deductibles are usually expressed separately for the two parts of a workers’ compensation claim: indemnity (lost wages) and medical.

Get the facts before increasing the deductible on your policy. How much will you save in premium? Are the deductibles on a per claim or per year basis? Run the numbers to see what the deductible would have cost you in the past three years based on your claims experience. Are the savings worth the risk?

Deductibles can also affect the losses that show up on your experience modification sheet. In many states a loss under the deductible is not included as an experience mod loss. This can have a positive impact on your premium down the road.