Workers Comp Term Of The Day - Partial Retention

Partial retention of a risk can be thought of as either using a deductible or an umbrella to cover catastrophic events that would ruin certain insurance programs. Your car insurance deductible can be thought of as a partial retention. Partial retention plans in Workers Compensation can either be a large deductible program or a self insured that has acquired reinsurance. The law of large numbers makes partial retention a good risk management technique. The self insured company may not have enough funding to cover catastrophic events.