Product Update

Workers Comp Small Deductibles Updated in Construction Risk Management


This release of Construction Risk Management updates the state-by-state workers compensation small deductible table.

Workers compensation deductibles are a popular cost-control tool for contractors. Almost all nonmonopolistic states have approved the use of small deductible plans for workers compensation insurance. The offer of small deductible plans is mandatory in some states and optional in others. Maximum deductibles range from as low as $500 to as much as $25,000. The majority of small deductible plans apply to both medical and indemnity (lost-time) claims. The premium credit to be applied to a policy containing a small deductible is also mandated by the states. Discounts range from less than 1 percent to more than 30 percent depending upon the size of the deductible and the insured's hazard group. State small deductible plans also stipulate whether losses will be reported on a gross or net basis for purposes of experience rating. In states that allow net reporting of losses, contractors have a significant incentive to take a higher deductible.

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