A Workers Compensation policy that works for one trucking company may not be right for another. Our experienced workers’ compensation underwriters are specialists in tailoring insurance programs and payment options to fit your needs. Here is a summary of the workers’ compensation programs available at Great West Casualty Company:
Guaranteed cost plan. A guaranteed cost plan is a Workers Compensation insurance policy that is not subject to adjustment due to losses that occur during the policy term. The only variables affecting premium that may change between policy inception and audit are the E-mod and payroll. There is no deductible on this program. This is in contrast to loss-sensitive plans.
Large deductible plans. Large deductibles on workers compensation policies are a viable risk-financing alternative for many insureds. Essentially, a large deductible represents the first layer of loss funding. On a large deductible plan, the employer purchases workers’ compensation insurance with a deductible of at least $50,000 (often $250,000 or more). Great West will provide administrative and claims services, and the employer reimburses Great West for any losses paid under the per claim occurrence deductible. More than forty states currently allow a large deductible plan.
In a large deductible plan, premium is calculated on a guaranteed cost basis and then a factor (deductible credit) is applied for the insured taking the first layer of losses. The premium is less than in a guaranteed cost plan because the insured will be paying the first layer of losses.
Retrospective rating plans. A retrospective rating plan is a workers compensation insurance policy that makes a subsequent adjustment to premium, after policy expiration, based on losses generated during the policy period. It is a great alternative in states not allowing a large deductible plan. The adjustment can fluctuate within set parameters, based on the losses generated during the policy period. The retrospective rating plan period can be one or three years long with adjustments continuing annually until all claims are paid.
Excess workers compensation plans. This type of coverage is available for employers that have been granted self-insured status by a state. The excess general liability policy promises to reimburse the insured up to the limits of the excess workers’ compensation policy, for workers’ compensation liabilities the insured is obligated to pay exceeding their authorized self-insured limit.This summary is intended for informational purposes only and does not replace or modify the definitions or information contained in any insurance policy or declaration page, which controls all coverage determinations. Terms and conditions may vary by state, and exclusions may apply.