Fully Insured Plans: Workers' Compensation - There is no complex administration of plan required

Similar in both concept and in scope to the fully insured health plans for group coverage, fully-insured workers' compensation plans have an advantages in the sense that all financial risks are assumed by the insurance company and there is no complex administration of plan required.

Depending on the requirements of each state and the size of the employer, it may not be cost-effective for many employers to assume the risk of paying for claims, as well as the cost associated with administering such a plan. For many, it is most cost-effective when the insurance carrier is undertaking the risk of paying for potential claims and its administration. On the flipside, employers utilizing a fully insured program lose the potential for profit to be gained from any remaining premiums after claim and administration expenses have been paid.

Broad Coverage Service specializes in analyzing the challenges of each company and determining whether the application of a fully-insured plan is prudent. Through Broad Coverage’s access to many insurance carriers, we will work with clients to choose the appropriate carriers and plans in an effort to provide employees with the most cost-effective options available.