As a business owner, you know that you need to carry workers’ compensation coverage. When it comes to shopping for coverage for workplace injuries, you’ve probably noticed that there are a lot of options available to you. Here is what you need to know about guaranteed cost programs.
Pros of a Guaranteed Cost Program
For small businesses, this program may be more affordable than others. If you like predictable costs, one of the major advantages is a fixed cost policy. It’s all-inclusive so that it will cover all different risks. No matter the injury, the insurer pays the costs.
Cons of a Guaranteed Cost Program
Not every business benefits from a guaranteed cost program. As your business grows, you may want to take on more risk. These programs do not allow for you to benefit from cash flow if you have good claims experience. Your costs during the year may be higher with this type of plan because the carrier holds the risk.
Workers’ compensation is necessary for all businesses, small and large. How you decide to insure your company is up to you. For small businesses, the benefits of guaranteed cost workers compensation coverage may outweigh the disadvantages. If you choose guaranteed cost coverage, you can change it as your company grows