What Is Excess Workers’ Compensation Insurance

Excess workers’ compensation can be a useful policy to purchase when regular workers’ compensation is not enough to cover businesses. 

A small business may have workers’ compensation, which covers many employee workplace accidents. But a small business’ risk manager may still worry about a serious workers’ compensation claim wherein the claim settlement amount could put the business into financial hardship. The solution to this problem? Excess workers’ comp insurance.

What is excess workers’ compensation insurance? 

Excess workers’ comp works to financially protect the self-insured employer for workers’ compensation claims that exceed the designated dollar limit.

What excess comp insurance does is cover all workers’ comp losses up to a specific dollar amount, or, if you choose to, an unlimited amount.

Are there benefits to excess workers’ compensation insurance?

Aside from the clear benefit of being reimbursed for the lethal workers’ comp claims that exceed the self-insured amount, excess workers’ comp can provide additional benefits as well.

Many self-insurers are not able to be self-insured without this great policy. The reason being is because self-insurance gives the risk manager control over the cost of the company insurance program. This, in turn, gives them more control over the claims and improves the cash flow by lowering the cost of workers’ comp insurance.

Additional services that are offered by the excess workers’ comp insurance include things like:

  • Emergency planning and preparation
  • Guidance in meeting the required regulations
  • Onsite safety checks and reviews
  • Best practices for managing workers’ compensation claims
  • Underwriting guidance
  • Assistance in managing and controlling workplace hazards
  • Catastrophic claim management

At PMC Insurance Group, we can supply the perfect small business insurance and can help put the proper policies in place to protect any business from the dangers of everyday life which can affect workers’ compensation. To learn more about getting competitive coverage for your small business clients, contact us today.

Comments are closed.