How do you purchase coverage?
Employers can purchase coverage by utilizing the services of a licensed agent/broker to place the insurance with a private carrier or through private insurance companies directly.
- New employers and those businesses considered “high risk” where coverage is not available through a private insurance company can purchase coverage from:
In “Monopolistic States” – Ohio, North Dakota, Wyoming and Washington – coverage is only available from a state-operated plan
- Competitive State Funds – run by a state to provide coverage
- Assigned Risk Plans – a pool of private carriers required to insure certain amounts of high-risk clients
Self Insurance – Typically reserved for larger businesses that have the financial capacity to directly pay workers’ compensation claims. There are significant collateral requirements imposed by states for companies to qualify as a self-insurer.
Next Question: Is there an audit process for workers' compensation policies?