What is your process for evaluating self-insured workers’ compensation programs?

What is your process for evaluating self-insured workers’ compensation programs?

Evaluating self-insured workers’ compensation programs is a specialized service I provide for businesses seeking cost-effective alternatives to traditional insurance. The process begins with a feasibility study, analyzing your claims history, financial stability, and operational risks. I review three to five years of workers’ comp claims data to assess loss patterns, identifying high-cost claims and preventable incidents. Financial analysis includes cash flow, reserves, and ability to cover potential losses, ensuring self-insurance is viable. I also evaluate your industry—e.g., manufacturing’s high risks versus consulting’s lower risks—to project costs. Next, I assess compliance with state-specific self-insurance requirements, such as California’s security deposits or Texas’s reporting rules. This includes verifying administrative capacity for claims management and OSHA compliance. I benchmark your data against industry standards and traditional insurance costs, projecting savings or risks. For example, a large healthcare client saved 15% annually by switching to self-insurance after my analysis. My deliverables include a comprehensive feasibility report, cost projections, and a compliance roadmap, all tailored to your business. If self-insurance is viable, I guide you through state applications, third-party administrator selection, and safety program enhancements to minimize claims. Ongoing support includes quarterly claims and reserve reviews to ensure financial stability. If self-insurance isn’t suitable, I recommend optimized traditional insurance strategies. My process ensures informed decisions, balancing cost savings with regulatory and financial risks, delivering a sustainable workers’ comp solution.