The Workers' Compensation Deductible program is designed to provide a cost saving option for Wyoming businesses. With the Deductible Program, an employer could reduce premiums in exchange for an agreement to reimburse the Division for all losses up to a specified deductible amount. The Division would periodically bill the employer for reimbursement of payments until the per-injury deductible is met.
- Deductible amounts per claim ranging from $1,000 to $100,000
- Deductible limits apply separately to each reported injury
- The Division assumes responsibility for all losses in excess of the deductible level
- The Division continues to adjudicate all claims and continues to pay all compensable claims
- The employer reimburses the Division for all costs up to the selected deductible for the life of each case
What are the risks of participating in the program?
- The employer assumes more risk by paying an increased portion of claims costs
- There is potential for substantial fluctuations in the costs of the program
- Numerous or large losses could be detrimental
What are the advantages of participating in the program?
- Potential to reduce worker's compensation costs
- Provides employers a loss-sensitive program, rewarding those employers who successfully manage their losses
- Employer retains most of the advantages and services of the Division's standard program
- Participation in the Deductible Program is based on the financial stability and resources of the employer who must be in good standing with the Division. The employer's financial capacity to absorb costs associated with claims will be considered
- The Division will require an employer to provide a Surety Bond Letter of Credit or a cash deposit guaranteeing payment of losses
- Both parties must sign an irrevocable deductible contract
- Work related injuries must be reported to the Division in a timely fashion
The Division will analyze each deductible application based on risk analysis and sound business practices. The Division may refuse any Deductible Program applicant if it is determined that the request does not represent a sound business practice or decision. For additional information on this program, contact us at: