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Alternative Workers Comp Insurance – Great Choice Sometimes


Are Alternative Workers Comp Insurance Programs Great Choices?

One of the most popular consultant assignments we receive starts with a question such as in the above heading.  Alternative Workers Comp insurance programs flourish just after a recession starts or when businesses are booming.  So many articles on alternative programs to voluntary Workers Comp market policies appear on this website.

pic different paths alternative workers comp insurance
Kate Jewell / A choice of public right of way

Most of the articles on alternative workers comp insurance programs were generated due to a question posed by an employer when it decides to branch out into other types of coverage, or at least explore the possibilities.

Let us cover some of the alternatives.  Two sentences will be added to each alternative workers comp program.  One will be the most positive and one will be a negative consideration.  Click on each heading if you wish to read more articles contained in the J&L website.


Self-insurance makes up approximately 15% of the US insurance programs in the US.  Many employers used to consider becoming self-insured as more of a vanity project than cost savings.  You have to qualify with each state where you have a location.

Large Deductible 

An alternative to self-insurance –  where the employer cannot qualify for self-insurance.  Large deductible insurance carriers still report the insurance Experience Modification Factors to the rating bureaus, unlike self-insurance.  Using a large deductible policy as an alternative Workers Comp program can save premium dollars if the conditions are right and various accurate decisions have been made before policy issuance.

Captives (onshore and offshore) 

The reasons for using a Captive insurance carrier are very similar to the large deductible programs.  831 (b) small captives have come under a large amount of scrutiny from the Internal Revenue Service after being named to the IRS’s Dirty Dozen tax avoidance schemes.  Much thought and preparations need to go into captive planning to not run afoul of the increased scrutiny and regulations.

PEOs (Professional Employer Organizations) 

PEOs used to have a bad reputation for going out of business and leaving their creditors, covered employers, and injured employees to fend for themselves.  PEOs have turned their reputations around for the most part.  Many offer alternative workers comp programs along with other types of employee benefits and pay-go payment terms.

All Other Types of Alternative Workers Comp Insurance

There are so many alternatives to a voluntary market workers comp policy.  Sometimes, however, regular insurance policies can work for an employer if they adhere to a strict safety and risk management program.  J&L has aided in switching employers from an alternative workers comp insurance program back to a voluntary policy.



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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