Five Ways to reduce the risk of catastrophic losses
In the transportation industry, motor carriers face a myriad of risks that can lead to catastrophic...
Guaranteed Cost policies help motor carriers keep their Workers Compensation and trucking insurance costs stable. It is a risk financing approach Great West offers that adds predictability to your budgeting and cash flow.
When you choose a plan that guarantees your premium cost, you know exactly how much you’ll spend each year on your insurance. Your policy is priced at a flat rate, and you pay a fixed premium annually.
That makes this plan a popular option for small and mid-sized motor carriers that are budget conscious.
There are several benefits that make this option attractive, especially if you are a smaller motor carrier. The biggest advantage is budgeting predictability.
While gaining budget predictability has a lot of advantages, there are a few potential drawbacks to consider as well.
When you choose a Guaranteed Cost for your workers compensation policy, your trucking company agrees to pay a premium based on a flat-rate estimate of your payroll at the beginning of your plan period. After your plan expires, we’ll do an audit of your actual payroll and your final premium will be adjusted accordingly.
Many motor carriers consider this type of risk financing tool when they’re looking for “first dollar coverage.” This means that when your trucking company has a claim, the insurance policy responds without you having to pay a deductible. The insurance carrier assumes all the risks and pays for all losses associated with the claim.
While a Guaranteed Cost Workers Compensation policy may be a great fit for a small to medium-sized motor carrier, it may not be the best fit if you’re a larger trucking company with the financial stability to assume more risk in exchange for lower premiums. That’s where the experienced underwriters at Great West can help. Our team can tailor your risk financing options to fit your business’s needs.
If your state has granted your trucking company self-insured status, an Excess Workers Compensation policy can be an attractive risk financing option to limit your financial liability. Excess Workers Comp reimburses your company for claims that exceed your authorized self-insured maximum, up to the limits of the policy. The policy caps your financial liability and out-of-pocket costs, protecting your trucking company from large payouts.
learn moreA Large Deductible plan is a Workers Comp option that can be financially advantageous for large motor carriers. If your business is financially stable and you are focused on loss control measures, it may be an attractive risk financing option. With this plan, your trucking company retains more of the risk associated with workplace injury claims by selecting a higher deductible — in exchange for lower premiums.
learn moreA Retrospective Rating Workers Comp plan incentivizes companies to control losses through safe operations. It can be a great fit if you’re a large motor carrier that is dedicated to workplace safety and has a reliable claims history. After the policy expires, an adjustment is made to your premium based on claims that occurred during its term. The premium adjustment can go up or down based on the losses you had. The plan rewards companies that have few claims with reduced premiums.
retrospective rating page?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.
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In the transportation industry, motor carriers face a myriad of risks that can lead to catastrophic...
Great West |
This story is part of a series of stories examining the total cost of risk, and the four areas...
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