If you have the option to purchase a workers’ compensation plan that features a low deductible, you might be wondering exactly why that deductible is so small – and why you would pay a deductible at all when deductible-free plans exist. But these plans are actually quite common, and the deductibles are meant to be as low.
Benefits of a Small Deductible Plan
Small deductible workers compensation plans allow businesses to better manage the cost of providing this type of insurance. With a deductible, the employer often gets the same comprehensive coverage as with a deductible-free plan, but will ultimately pay less in terms of premiums.
The deductible, of course, is the amount that the company will pay if a claim is ever made (the business itself is the one that owns the insurance policy – these costs are never passed on to the workers themselves). Depending on your state, small deductible workers compensation plans may or not be available to you. If you feel like this type of plan would benefit your business, you may have to make a special request in order to see what is available.
No matter which type of plan you decide to go with for your employees, it’s always good to know that there are different options from which to choose.