When you need to save money on personal insurance, the best option is usually to accept a larger deductible instead of lower coverage. It makes plain sense because the deductible can be calibrated to your own financial capacity, while the additional coverage you get for the price makes sure you are protected against the biggest risks. Large deductible workers comp works the same way, and for the right companies it provides substantial annual savings.
The trade off companies make when choosing a larger deductible is a little different from that made when you do it on a personal insurance plan. Instead of looking at what your business can afford to pay, look at your annual claims and find the point where your savings on premiums is greater than the increased deductible you will have to pay in an average year. If there’s no savings in accepting the larger deductible, then there’s no reason to do it.
The more you can save by accepting a larger deductible, the better an idea it is. As a result, you are not looking for the highest deductible and maximum combined, you are looking for the maximum that covers your costliest predictable risk, with deductibles that make it more cost effective than before.