Using an allocation to control retained professional liability and workers’ comp insurance

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By Richard C. Frese | 17 June 2015

The primary purpose of an allocation is to distribute costs, but there are many additional benefits. Management may be better able to control losses, promote safety, and establish a new culture in the workplace. This approach could lead to lower self-insurance costs and lower excess and reinsurance premiums. The challenge for managers is in knowing where to begin to design such an allocation or in maintaining a process for routinely reviewing the existing allocation.

This article was published on, the Healthcare Financial Management Association's website.