Ways to Save on Workers Comp Premiums - Acting Like a Fully-Self Insured

Workers Comp Insurance Pools

Insurance Pools were a great way to save on premiums in the past. Homogeneous employers were grouped together into risk pools and each member of the pool paid their share of the Workers Comp total costs. The Insurance Pool Administrator which operated like a hybrid TPA would adjust the claims, handle all filings, and handle all administrative duties for a fee.

These are not as popular as they were in the 1990's due to the law of large numbers. Risk pools such as trucking, construction, food service etc. did not have enough members to spread the risk. One or two members having a very poor Experience Rating would over-burden the rest of the pool. The pools were often not large enough to offset the employers with many or a few very serious claims. Insurance Pools are still in existence.

If you are considering joining an insurance pool, make sure you have an expert or a team of experts analyze the pool before signing on. We received many calls and emails on trucking pools where the employer had very few claims and their Workers Comp premium doubled.

There are now very many hybrid insurance pools that may save an employer on premiums. Once again, please make sure that the pool is healthy before turning your Workers Comp program over to a pool administrator.

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