Product Update

Employee Leasing, Small Deductibles, and Endorsement Updates in IRMI Workers Comp


This release of IRMI Workers Comp updates discussions on employee leasing, small deductibles, and a listing of current state-specific workers compensation endorsements.

In the past decade, as the popularity of employee leasing grew as a staffing option, the majority of states implemented regulations and/or statutes to control how the leasing companies/professional employer organizations operated in their jurisdictions. This section of the reference provides updated discussions related to employee leasing that review the registration and licensing requirements, the application of exclusive remedy, and the insurance placement requirements in each of the 51 jurisdictions. Note that Missouri, New Jersey, and Oregon have recently made changes to their insurance placement rules.

The use of small deductibles in guaranteed cost workers compensation programs allows the insured to share the risk for a premium cost savings. Generally, small deductible programs fall in the range of $2,500 to $75,000 depending on the jurisdiction. The vast majority of jurisdictions offer some form of small deductible with many providing plans that apply to both medical and indemnity (lost-time) claims. This discussion offers state-specific information about small deductibles, including the type of deductibles available, the range of the deductible amounts, the range of premium discounts, and how deductible losses are reported for unit statistical purposes (gross or net).

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