A SOLUTION FOR SELF-INSURED LOUISIANA ENTITIES

Self-Insured Conversion Program

We are proud to offer a program designed to guide self-insured entities in converting to comprehensive workers’ comp coverage with LWCC. Discover why a move to LWCC is the best choice for Louisiana businesses and their workers, offering expertise, stability, and value.

THE BASICS OF INSURING LOUISIANA WORKERS

Louisiana employers are required to provide workers’ comp insurance.

Private Insurance and Self Insurance are two types to consider
Financial Responsibility
Entities pay a fixed premium to an insurance carrier, who assumes all financial responsibility for workers’ comp claims. 
Fixed Costs
Costs are stable, predictable, and competitive as the premium is fixed during the policy period.
Risk Management
With a shared interest in the safety of workers, the insurance carrier provides services to help mitigate risks and reduce workplace injuries.
Regulatory Requirements
The insurance carrier handles all regulatory compliance related to workers’ comp coverage.
Claims Management
The insurance carrier handles every aspect of all workers’ comp claims.
Injured Worker Experience
The insurance carrier plays a crucial role in the injured worker’s experience by ensuring that injured workers receive appropriate care and benefits.
Financial Responsibility
Self-insured entities directly assume all financial risk and must maintain adequate reserves to cover both current and future claims.
Cost Variability
Yearly costs can vary significantly depending on the number and severity of claims.
Risk Management
Self-insured entities must independently and actively invest in safety programs and loss prevention to mitigate risks.
Regulatory Requirements
Self-insured entities must monitor and be in compliance with Louisiana’s strict regulatory requirements, such as financial reporting, excess coverage, and claims administration.
Claims Management
Self-insured entities manage their own claims but often hire Third-Party Administrators (TPAs), whose flat and service-based fees can lead to conflicts of interest and higher costs.
Injured Worker Experience
Without access to an independent advocate or broad medical network, injured workers with self-insured employers could experience longer recovery times and extended time away from work.

THE HISTORY OF SELF INSURANCE

A volatile market forced alternate solutions.

Workers’ comp has evolved considerably.

Carriers leaving the market led to a lack of available coverage options

With limited or sometimes no options, many employers became self-insured or joined self-insurance funds to provide the coverage the private market could not.

All Louisiana entities are guaranteed access to workers’ comp insurance.

LWCC was formed in 1991 to stabilize the market. While other carriers come and go as market conditions fluctuate, LWCC has been and always will be here to meet the needs of Louisiana entities and their hardworking employees.

Escalating premiums were unaffordable for many entities.

Rising rates made it difficult or impossible for many entities to operate. Some entities closed or left the state, adversely impacting Louisiana’s economy.

LWCC’s average rates have dropped 67.7% over the past 30 years

While LWCC was created to solve a problem, our continued success as a company has created a market that is competitive, stable, and affordable for Louisiana entities.

Injured workers were left vulnerable and sometimes unsupported.

Carrier insolvencies created uncertainty and delays in the care of injured workers. Lack of available and affordable coverage meant that some workers were left unprotected.

Claims management now prioritizes quality care for injured workers.

LWCC provides the best care for the injured worker and their caregivers through compassionate and experienced management of the unique aspects of every injury.

Workplace safety was not prioritized, leaving workers at risk.

A chaotic marketplace left employers focusing on securing workers’ comp with little bandwidth to focus on workplace safety measures.

Workplace safety equips businesses for success and preventing accidents.

LWCC’s safety experts have a holistic and tailored approach to protecting workers and equipping them for success. By focusing on long-term solutions, like comprehensive training, we’re proactively keeping workers healthy.

1980s
TODAY

THE COST COMPARISON

A case study of cost savings

Analyzing the projected savings for an LWCC policyholder transitioning from self-insurance.

5 Year Estimated Net Cost

$2.87M
Fixed and stable premiums throughout the policy period
Dividend eligibility from year one, independent of loss experience
Full access to LWCC’s comprehensive in-house services and programs
VS.
Self-Insured

5 Year Estimated Net Cost

$3.85M
Yearly costs can vary significantly depending on the number and severity of claims
Excess coverage is getting more expensive for less coverage
5-Year Total Estimated Savings
$
985
K
30% Estimated Cost Savings
In the first five years, this policyholder could save $985K, with annual savings exceeding $300K thereafter–totaling more than 30% in savings over five years.

Breakdowns

Estimated Self-Insured Incurred Costs
Compounding Impact of Dividend* on Estimated Cost
Estimated Cost Comparison

Commonly Self-Insured Louisiana Businesses

School Boards & Individual Schools
Municipalities
Waterworks
Police Juries
Hospitals
600
+
LWCC provides coverage and expert servicing for over 600 complex entities of this kind.

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.

Explore LWCC’s Membership Benefits

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 Loyal

We’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.

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

Why should we consider switching from self-insurance to a guaranteed cost workers' compensation program?
How does a guaranteed cost insurance policy differ from self-insurance?
Is this a new program for LWCC?
Can LWCC help develop a return-to-work program?
Will I have a team dedicated to me when I convert to LWCC?
Will we still need to complete the annual self-insurance recertification process?
How will the transition impact our staff’s workload?
Who is going to handle the run-off claims?
How does LWCC’s claims process differ from working with a Third-Party Administrator (TPA)?
Will injured workers experience a different process when filing claims?
Can LWCC review the open claims from when the account was self-insured?