| As a business owner you've probably | | | | Understanding how worker compensation and |
| encountered workers compensation reinsurance | | | | reinsurance of this compensation works could be |
| before. This is when an insurance company has to | | | | the only way you know how exactly you are |
| insure itself with another insurance company to | | | | going to receive the money you need to get by |
| share out the loss with other insurance companies. | | | | in life. |
| Every insurance company will need reinsurance | | | | If an injury occurs in the workplace and the |
| now and again, especially when there is a large | | | | company has workers compensation insurance |
| amount of claims going through at one time to | | | | they have protected their employees from |
| avoid going bankrupt. | | | | becoming stuck financially, but if one insurance |
| With workers compensation you could see | | | | company can't pay off the compensation |
| reinsurance done when a claim is too large for | | | | reinsurance is going to be done. |
| one insurance company to take on. This means | | | | Don't think that you are the only one who is being |
| you could see your claim going through not only | | | | put through the reinsurance process because you |
| one insurance company, but multiple companies. | | | | are not. When one claim is put through the |
| It can be hard to avoid this after the event that | | | | reinsurance process it is guaranteed there are |
| occurred in New York a few years ago as many | | | | several others going through the same thing. It |
| insurance companies went under after that. | | | | may take two insurance companies, it may take |
| Reinsurance tends to occur on almost all claims as | | | | ten, it all depends on how much is being paid out |
| not every insurance company has endless funding | | | | for the workers compensation. |
| to pay off all the claims in one lump sum. | | | | Workers compensation reinsurance is becoming |
| When you are receiving workers compensation | | | | more practiced by many insurance companies |
| you could see reinsurance occur and you may get | | | | throughout these hard times so expect to see it |
| frustrated as it could cause a little bump along the | | | | happen if you are involved with receiving workers |
| way. Reinsurance has been designed to ensure | | | | compensation. It is not an uncommon thing and |
| that everyone gets their full earnings for their | | | | by having the option to use reinsurance people |
| workers compensation but when multiple | | | | become more likely to receive the compensation |
| insurance companies can't cover it things could get | | | | for the time they are off work due to an injury |
| a little rough. | | | | in the workforce. |