There are three possible options for a company to comply with workers' compensation law and obtain coverage for its employees.One option is to enroll in a state-based program and another option is to become a self-insurer.What is the third option?

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Quizplus · Accepted Answer

The best choice is to obtain private workers' compensation insurance. This is because private insurance companies offer customized coverage and competitive rates, whereas state-based programs may have limitations and higher costs. Becoming a self-insurer requires financial stability and administrative resources, which many companies may not have. Requesting waivers from employees or refusing to provide coverage is not a viable option, as it puts the company at risk of legal and financial consequences. Obtaining a waiver from the state may be possible, but it is not a substitute for actual coverage and may not always be granted. Therefore, the best and most practical option is to obtain private workers' compensation insurance.

There Are Three Possible Options for a Company to Comply