As an employer, it is important that you dedicate time and effort to providing the best possible benefits to your team. Of course, this also means knowing how to balance what’s best for your company with what your employees require. When reviewing your options with workers’ compensation, for example, you’ll find it is always best to take a look at all of the various choices available. Gaining insight into nontraditional plans can help you determine which is right for your business.
A Breakdown of Self-Funded Plans
Some of the biggest alternatives to a standard plan for workers’ compensation are known as self funded workers comp plans. As the name suggests, this is the type of policy that eliminates the need for an insurance company. Instead, the plan is funded by the employer. Obviously, this is not the best decision for many businesses, as the expense can be damaging to startups and those with limited cash flow. However, there are many instances where a business owner might find this to be a preferable way of funding a plan. Advantages can include:
- Streamlined management of claims
- More control over overall costs
- Explore a pay-as-you-go method
Explore the Alternatives
While there are many details to review before making a final decision, knowing about alternatives to standard insurance plans can be a great way for you to see tangible results from your efforts. Take time to look at the details and find a sensible fit for your company.