Workmans Compensation Insurance
While workman's compensation insurance is the law in all states and is designed to protect both the employee and the employer, many employers are not very supportive of this type of insurance. The most common reason given for this is that the high cost of these policies can push them almost out of reach for many small businesses. For others the application process can be long and often confusing as they try and find the best coverage for their business. There are three different ways that a company can go about getting workman's compensation insurance. They can go to an insurance agency to buy a policy, self insure if they have the capital to work with or in many states buy into their state's assigned risk fund. The choice of which type of coverage to seek should be based on what type of business is being insured, how many people it employs, where the company is located and what type of risks are involved for its employees.
There are many different insurance companies that offer workman's compensation insurance policies for all sizes of companies. However, if they deem the risks to be excessively high they may decide to raise the rates so high that a company simply cannot afford them or choose not to issue a policy. In this case a company may have no choice but to either self insure or buy into their state's insurance plan. These plans are put in place specifically for this type of situation to make sure that no matter what a company can insure its employees. Many of the larger companies choose to self insure rather than going out and buying a workman's compensation insurance policy. By law if they plan to do this, they must be able to prove that they have enough cash reserves and positive cash flow to pay any claim. Doing things this way eliminates the cost of buying insurance and paying the monthly or annual premiums. This can save a large company hundreds of thousands of dollars, but they must still carry some form of insurance to cover any costs that they do not have the reserves to pay.
However, since most companies do not have this option available to them, they have to buy their workman's compensation insurance from an insurance agency. Here they will find that it pays to spend some time shopping around to find the best price on the coverage they need to protect their employees and themselves. It is important to find an agency that has experience in this type of insurance so that the policy is written properly and provides the necessary coverage at an affordable rate. At Frankel Workers Comp you will find an independent insurance agency that specializes in workman's compensation insurance. They have access to several insurance carriers that make it possible for them to provide a wide range of coverages at very affordable rates no matter where a company is located in the US. With over 20 years of experience they team of agents can help most companies find the right coverage at the right price to keep their employees full insured in case of an accident.
