Guaranteed cost policy. A guaranteed cost policy is a workers’ compensation insurance policy that’s not subject to adjustment due to losses which occur during the policy term. The only factors affecting premium that may change between coverage inception and audit are the E-mod and payroll. There is no deductible on this program. This is in contrast to loss-sensitive policys.

Large deductible policys. Substantial deductibles on workers’ compensation policies are a viable risk-financing alternative for many insureds. Basically, a large deductible reflects the initial layer of loss funding. Administrative and claims solutions are offered, and the employer reimburses for any losses paid under the per claim occurrence deductible. More than 40 states allow a large deductible policy.

The premium is less than at a guaranteed cost policy because the insured will be paying the first layer of losses.

Retrospective rating policys. A retrospective rating program is a workers’ compensation insurance policy which makes a subsequent adjustment to premium, after policy expiration, according to losses generated during the policy period. It’s an excellent alternative in states not allowing a large deductible policy. The adjustment can fluctuate within set parameters, based on the losses generated during the policy period. The retrospective rating policy period can be one or three years long with adjustments continuing annually until all claims are paid.

Excessive workers’ compensation policys. This kind of coverage is available for employers which were granted self-insured status by a state. The excess general liability policy promises to reimburse the insured up to the limits of their excess workers’ compensation policy, for workers’ compensation liabilities the insured is obligated to pay exceeding their approved self-insured limit.