In today’s fluctuating workers’ comp market, many high-premium clients are reevaluating their options. For businesses with elevated risk, prior losses, or large payrolls, a workers’ comp deductible program — especially one with a large deductible structure — can be a powerful way to regain control. These policies aren’t just cost-saving tools; they’re strategic instruments that reward operational maturity and risk management. Landmark Wholesale helps agents structure and place these programs, even in the toughest sectors.
How Does a Large Deductible Workers’ Comp Program Work?
A large deductible workers’ compensation program shifts a greater portion of financial risk to the insured while keeping the policy itself fully regulated and statutory. Under this model, the client agrees to pay a set deductible amount per claim, typically starting at $25,000 and extending up to $500,000 or more. The carrier still pays the full claim upfront, but the insured reimburses the carrier for all losses within the deductible layer.
In contrast to guaranteed cost policies, where premiums are fixed regardless of loss experience, a large deductible structure allows employers to directly benefit from strong safety and claims management practices. Carriers retain oversight and often require claims to be managed by approved third-party administrators (TPAs), creating a shared accountability model that demands financial discipline and operational maturity from the client.
When a Large Deductible Program Makes Sense
This structure isn’t just for jumbo national firms — it’s increasingly valuable for middle-market insureds in high-risk sectors. Typically, clients with annual workers’ comp premiums of $250,000 or more are good candidates, especially if they have:
- Predictable loss histories or the resources to influence outcomes through internal safety and HR controls
- Cash-flow strength to support risk retention
- A desire for control over claims and a willingness to take ownership of the process
High-risk industries like transportation, staffing, manufacturing, and agriculture often face higher-than-average premiums under guaranteed cost models due to elevated loss frequency or severity. For these clients, a large deductible solution can realign the incentives and create long-term savings potential.
According to IBISWorld, carriers have recently raised premiums following years of price-cutting that squeezed margins across the industry. As dominant players consolidate market share and pass costs back to insureds, large deductible options give qualified employers a way to break the cycle, replacing flat-rate premiums with performance-based structures.
Advantages & Trade-Offs Agents Should Know
There’s no denying the appeal of reduced premiums. But large deductible programs introduce added complexity and risk.
Key advantages include:
- Lower upfront costs: Premiums are generally lower than traditional coverage.
- Claims control: Clients can work closely with TPAs to manage outcomes.
- Transparency and data: More insight into claims drivers helps target improvements.
Critical trade-offs:
- Financial risk: Clients must fund claims within the deductible, requiring disciplined cash management.
- Operational readiness: Success depends on strong internal safety programs and vendor coordination.
- Claims handling: Clients must often select and work closely with a TPA, which adds a layer of administrative oversight.
While the industry remains competitive, IBISWorld notes that most clients still default to the lowest-cost option. Agents who understand alternative funding strategies, like large deductible plans, can offer a smarter, tailored solution that aligns with clients’ risk appetite and long-term goals.
Here’s where Landmark plays an essential role. We help agents evaluate client readiness, structure programs to match risk tolerance, and align claims management partners to ensure smooth execution.
How Landmark Builds & Supports Large Deductible Programs
Landmark is more than just a wholesaler; we’re a strategic resource for agents navigating complex workers’ comp placements. Our approach includes:
- Carrier access: We maintain relationships with carriers willing to underwrite high-deductible and specialty risk, including hard-to-place industries.
- Program design expertise: From deductible structures to captively supported layers, we tailor solutions to each client’s financial and operational reality.
- Claims advocacy: Our team actively engages with TPAs, defense counsel, and claims staff to drive down severity and close claims efficiently.
- Agent partnership: We support agents through client education, onboarding, and ongoing claims strategy, making sure the program works long after it’s bound.
If you’re working with an account that’s facing rising premiums, tough renewals, or looking to gain more control over their cost of risk, now’s the time to consider large deductible options.
Get appointed or send a submission to see how Landmark can help.
About Landmark Wholesale
Landmark is a nationally licensed facility for tough-to-place risk with a focus on securing alternate workers’ comp solutions. From PEOs to specialty programs, we offer access to coverage solutions other wholesalers can’t. Our recent placements include complex risks in staffing, transportation, and construction sectors — demonstrating our ability to secure coverage where others fail. Partner with Landmark Wholesale to find solutions for your toughest accounts and expand your market reach.
