Workers’ Comp Captive: The Solution Your Company Needs?

A workers’ comp captive pools risk and profit

How do you know if a workers’ comp captive is the solution your company needs? First, you need to know what it is.

What is a Workers’ Comp Captive?

Captives can be considered a hybrid of both a traditional workers’ comp insurance policy and self-insurance. With traditional insurance, you work with an insurance company who coordinates the plan, bears the risk but also reaps any rewards. If your company is self-insured, it is responsible for all the plan coordination and risk, but if well-managed, can also turn a profit.

Traditional workers’ comp coverage is typically the biggest expense most businesses have, after payroll and benefits. But because self-insurance requires specific expertise and management, it is an option beyond the reach of small and even most mid-size companies. A captive allows these businesses to band together to achieve economies of scale that allow them to share the potential risk and profit inherent with self-insurance, and hire professional management. The expertise and efficiencies of such an arrangement can tip the scales, turning an expense into a profit center.

When you work with The WorkPlace Solution, we bring our vast experience to bear, as well as predictive analytics and best practices to reduce the rates of on-the-job injuries and deaths. Our captive management team provides expert management, including expert legal, accounting and claims management.

Is a Workers’ Comp Captive Right for Your Business?

If you want to reduce the cost and duration of workers’ compensation claims and turn one of your biggest financial drains into a source of profit, a captive might be the solution for you. We start the process with an exploratory, no-obligation conversation. Even if you’re not qualified now, we can help you get there. Let us know when you are ready to explore your workers’ compensation insurance options.

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About the author

David Sinclair is the CEO of The WorkPlace Solutions and Sinclair Risk & Financial Management.

Are you ready to turn one of your biggest business expenses into a profit center?

The goal of The WorkPlace Solution is to provide our exclusive group of members a solid program to reduce claims and turn what once was a large draw on their P&L statement into a profit center.