Economic cycles of supply and demand affect full coverage programs more than self-insurance programs. In addition, the employer has the flexibility to unbundle such services as loss control or claims administration.
Gross payroll is usually easier to determine.
States that require employers to carry Workers' Compensation insurance must ensure that injured employees receive Workers' Compensation benefits. To give an employer permission to self-insure their WC obligations, the state qualifies the employer's financial strength to meet those workers' compensation obligations.