Gerald is the Risk Manager of Wally Mart, a large retailer l…
Gerald is the Risk Manager of Wally Mart, a large retailer located all across the United States. Wally Mart currently has a Worker’s Compensation Insurance policy for any injuries that employee sustain at work, for which Wally Mart would be held absolute/strictly legally liable. Wally Mart currently has a Full Insurance policy for Worker’s Compensation: which premium = $500,000 per year Gerald is considering engaging in Self-Insured Retention for the risk of employee injury; however, the company’s historical experience has been a bit volatile. Here is the history of employee-injury losses sustained by the company over the past three years: 2023 = $400,000 in the year 2024 = $1,250,000 in the year 2025 = $175,000 in the year What is one benefit that continuing to purchase the Worker’s Compensation Full Insurance policy would provide Wally Mart?
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