Workers’ Compensation Retention Buy-Down (Buffer Layer)
Workers’ Compensation markets are firming forcing employers to fund higher retentions and deductibles. Through a buffer layer policy employers can “buy-down” their retention to a more comfortable level for a reasonable cost.
Example: An employer with a self-insured retention of $500,000 could purchase a “buffer layer” of $150,000 excess of $350,000.
The benefits provided by the buffer layer policy include the major cost components of catastrophic claims including medical and defined benefits for wage loss. Coverage includes claims arising from occupational disease, cumulative trauma and employers’ liability. Benefits are typically limited to seven years through a sunset and commutation provision. Coverage can be customized to fit within an existing program with attachment points starting at $50,000 with limits up to $1,000,000.