Part of running a company is using resources well, including available finances. For many employers, large-deductibles plans for workers compensation packages appear to be an effective way of saving money. However, such plans may not be all that they appear, because the bottom line of imagined cost savings is not the best option for every company.
Misunderstood Costs in Large-Deductibles Plans
Compensation packages for workers are complicated, with many types of possible expenses. Some employers may not understand the financial risks of choosing plans with large deductibles. Potential costs they could face include:
- Reviews of medical bills – This is perhaps one of the least understood aspects of workers compensation insurance. It is complex, and the amount employers ultimately pay can vary based on numerous factors.
- Nursing care and case management
- Investigations to insure medical claims are valid
- Digital research
- Attorney fees
Just one of these expenses could strain a company’s budget. A combination of them could be financially devastating.
Expert Insurance Advice
Insurance brokers should be able to explain the complexities of workers compensation packages to their clients as well as provide coverage options for every need. Just as insureds turn to them for advice, they likewise need to have the backing of an industry expert. Understanding how to handle workers compensation claims helps reduce the pain for everyone.