When a self-insured business starts to look into excess Workers Compensation, it can really help to gain an understanding of how such coverage actually works. Understanding how certain coverage works can help a business to decide what type of coverage will work best for the business and its employees, as well as possibly put some anxiety to rest.

The first thing to understand about excess Workers Compensation is that it is a type of coverage usually available to businesses that choose to self-insure. There are two types of coverage: specific and aggregate.

Specific excess coverage is in reference to a certain incident that may occur at a business that ends up costing the business owner or insured more money than projected. When the insured’s cost or losses add up to a specified amount, the insurance usually comes into play to pick up the rest of the cost.

Aggregate excess coverage has to do with the insured’s cost or losses over a given amount of time. Like specific coverage, aggregate coverage starts once the business owner’s losses have reached a predetermined amount. These amounts are often decided on between the business owner and the insurance company.

Excess Workers Compensation is really very simple and can be very beneficial for a business that chooses to self-insure. When an owner’s losses start to add up, such coverage would quite possibly come to the rescue.