Under which plan does the policyholder share the cost of claims for an injured worker?

The Small Deductible Plan is designed to involve the policyholder in sharing the cost of claims for injured workers. In this structure, the employer (policyholder) typically pays a certain level of claims related to workers' compensation up to a designated deductible amount. This means that for each claim, the employer is responsible for costs up to the deductible, allowing the employer to manage a portion of the risk.

This arrangement can motivate employers to focus on workplace safety and loss prevention, as they have a financial stake in the claims. Additionally, once the employers surpass the deductible amount, the insurance policy begins to cover any remaining costs of the claim, providing financial protection against excessively high claims.

In contrast, the other options do not involve a shared cost structure in the same way. The Dividends Plan, for instance, typically includes policies that return part of the premium to the policyholder if certain criteria are met, but it doesn’t involve a cost-sharing mechanism. The Large Deductible Plan generally requires a higher deductible than the Small Deductible Plan, where employers assume more financial risk, but this is not the same as sharing costs of individual claims. Finally, the Guaranteed Cost plan is a more traditional insurance structure where the employer pays a fixed premium