Paying workers comp claims out of pocket rather than turning them into the insurance company can be risky
Do you pay your small workers comp claims rather than turn them into the insurance company? Lots of business owners self-pay small claims in the hopes of keeping the losses off of their loss history report and out their experience modification calculations.
Self paying and not reporting small workers comp claims may sound like a good idea but it’s actually quite risky to the business owner. Small claims sometimes turn into large claims that are too large to self pay. Yes you can turn in the claim late to get the insurance company paying the bills but the insurance company in most states will have the legal right to force you to reimburse them.
If you want to self-pay workers comp claims set up a deductible on your policy and turn in all of your claims. That way if a small claim later becomes a big one the insurance company will be responsible for any claims payments