Self-Insured Conversion Program

THE BASICS OF INSURING LOUISIANA WORKERS
Louisiana employers are required to provide workers’ comp insurance.
THE COST COMPARISON
A case study of cost savings
5 Year Estimated Net Cost
5 Year Estimated Net Cost
Breakdowns
Category | Average Annual Estimated Cost |
---|---|
Incurred Indemnity & Medical Costs Statutorily defined benefits paid to injured workers for lost wages and medical care, including doctor visits, surgeries, and prescriptions. | $455K |
Rehab Expense Costs related to physical therapy and other recovery services necessary to return the injured worker to the job, often following serious injuries. | $10K |
Legal Fees Costs incurred when legal counsel is needed to manage or defend a workers’ comp claim. | $25K |
Other Expenses Additional, often unforeseen, costs charged by TPAs for services outside the flat rate, such as bill review, nurse case management, or expert evaluations. | $60K |
Loss Based Assessments State-imposed fees calculated as a percentage of total losses paid, contributing to programs like the Second Injury Fund. | $40K |
Internal Employee Time The cost of staff time spent administering and managing the self-insured workers’ comp program internally. | $20K |
Flat Rate TPA Cost A contractual, fixed fee paid to a third-party administrator for core claims management and program administration services. | $25K |
Excess Coverage The premium paid for a policy that protects against high-cost claims above a retention threshold, often misunderstood and increasingly expensive. | $135K |
Total Annual Average Estimated Cost
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
LWCC Premium | $795K | $795K | $795K | $795K | $795K |
Dividend | $74K | $148K | $222K | $296K | $370K |
Net Cost | $721K | $647K | $573K | $499K | $425K |
5-Year Estimated Dividend Total
$770K Yearly Cost
$770K Yearly Cost
$770K Yearly Cost
$770K Yearly Cost
$770K Yearly Cost
$49K Savings
$123K Savings
$197K Savings
$271K Savings
$345K Savings
$721K Yearly Cost
$647K Yearly Cost
$573K Yearly Cost
$499K Yearly Cost
$425K Yearly Cost
5-Year Estimated Dividend Total
Commonly Self-Insured Louisiana Businesses
Our deep experience allows us to effectively underwrite, efficiently service, and expertly manage the complexities of these accounts. Additionally, we have developed specialized expertise in seamlessly transitioning these types of complex entities from self-insurance to a guaranteed cost policy.
YOUR LWCC BENEFITS: ALWAYS AT WORK
Access unique LWCC membership benefits
LWCC takes the long view towards our business relationships, just like you do every day with yours. Being insured by a
mutual
LWCC operates for the benefit of its policyholders, rather than for shareholders or investors, which allows the company to focus its priorities on the long-term interests of Louisiana businesses. Our mutual status also allows for unique membership benefits, most notably our ability to share the financial success of the company through a dividend distribution. Choosing a mutual carrier matters, as we’re able to take the long view toward growth, stability, and benefits offered to our policyholders.

insurance carrier
LWCC provides insurance coverage to Louisiana businesses by taking on the risk associated with workplace injuries and illnesses. We empower safer workplaces across every industry through expert guidance and training on accident prevention. But when workers are injured, we provide medical and wage benefits while helping them return to work and a meaningful life with compassion and care.

means you can maximize your membership benefits, services, and dividend returns to drive your bottom line.

The LWCC Difference
As a purpose-driven business, LWCC goes beyond providing workers’ comp coverage. Every decision, at every level, is driven by our steadfast commitment to the prosperity of our home state and can be summarized in two words: Louisiana Loyal.
Learn more about Louisiana LoyalWe’re uniquely committed to helping Louisiana thrive.
Louisiana's business is our business. Our workers care for Louisiana workers. LWCC is loyal to the future of our home state because it's more than just our job to make sure Louisiana thrives. It's our purpose.

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Explore the long-term value of a policy with LWCC
Our dedicated self-insurance conversion team can customize a proposal to fit your business needs, highlighting the unique benefits, addressing challenges, and guiding you through every step of the process.
Get connected with our team
Frequently Asked Questions
Switching eliminates the financial uncertainty of self-insurance, providing predictable, fixed premiums while reducing administrative burdens. LWCC handles claims, taxes, and assessments, allowing your team to focus on core responsibilities.
Self-insurance means you operate as your own insurance carrier, directly covering claim costs and often purchasing excess insurance to protect against catastrophic losses. In contrast, a guaranteed cost policy transfers all workers' compensation risk to LWCC, providing comprehensive coverage at a predictable, fixed premium. This not only eliminates financial uncertainty but also simplifies administration and ensures expert claims management.
LWCC writes approximately 19K policies and workers’ compensation is all we do. We insure a wide range of industries, including dozens that have switched from a self-insured program to LWCC’s guaranteed cost coverage.
Absolutely! Whether you're looking to enhance an existing program or create one from the ground up, LWCC’s claims experts are ready to help design a return-to-work program tailored to your organization’s needs.
Yes! Your organization will have dedicated safety specialists committed to your success. Large entities will also have dedicated claims specialists. LWCC’s personalized onboarding process ensures a smooth transition while connecting you with your support team.
No. With LWCC’s guaranteed cost program, the time-consuming annual self-insurance recertification process is eliminated entirely.
LWCC takes on the responsibilities of claims management, safety services, and reporting for new claims after the effective date. This allows your staff to focus on other priorities.
Claims from the self-insured program can continue to be managed by the current TPA, or LWCC can assume TPA responsibilities moving forward.
- LWCC aligns its interests with yours—to care for injured workers while keeping costs down. Unlike some TPAs, our dedicated claims team prioritizes efficiency, communication, and positive outcomes.
- LWCC’s fees for handling claims occurring in the policy term are included in the initial premium charged at the outset of the policy. Unlike TPAs, we do not charge additional fees to handle open claims in subsequent years.
Yes, LWCC simplifies the process, reducing friction between your internal staff and injured employees. Our dedicated claims team manages each case, ensuring clear communication and timely resolution.
Yes! LWCC claims experts are willing to review historical open claims and give guidance on how these claims can be moved to closure.