Caitlin-Morgan Insurance Services

Large deductible workers compensation programs are a very common risk-financing alternative for insureds. They can offer cash flow benefits to its members while reducing the long-term cost of insurance.

SUMMARY OF ADVANTAGES AND DISADVANTAGES OF LARGE DEDUCTIBLE PROGRAMS

Advantages to Insured

Advantages of self-insurance without having to obtain regulatory approval, especially in multistate operations
Advantages of self-insurance without incurring high start-up costs
Significant cash flow advantage
Maintain all services of insurer
Easy access and easy exit
Possible stepping-stone to self-insurance
No fronting fees
Possible RML savings
Possible tax savings
May be able to improve experience modifier
Increased incentive for implementing loss control programs