| Asking the right questions is always the best place to start for any business exploring options. Should you still have questions be sure to contact our office, we'll be happy to help!
Q: How do safety groups work?
A: Workers' compensation insurance safety groups are essentially pools of safety conscientious employers who band together for the purposes of obtaining more favorable premiums. It is important to note that this is not self-insurance and therefore earned premiums are guaranteed with no possibility of further assessment.
Nearly 100 safety groups are underwritten by NYSIF, one of New York State's largest workers' compensation insurance carriers. These groups are an alternative, as written into NYS WC Law, offering the opportunity for NYS employers to enjoy lower premiums through their own in house safety efforts and the utilization of a seasoned Group Manager providing specialized risk management services.
Once a group is established, premiums collected from members of a group is "pooled" for each group year, after paying losses and related expenses and for the development of a contingent balance for future loss adjustments, any remaining funds may be declared back to members in the form of a dividend. This is referred to as the annual "accounting process" as conducted by the carrier and the Group Manager.
The Group Manager is also charged with the responsibility of promoting job safety, assisting members with claims report processing, and the premium audit process. The Group manager is the sole vehicle for group enrollment and service staffing.
As you can see, the Group Manager is the driving force behind all aspects of the group; the overall management of the group, the day to day operations, and of course assisting individual members through the insurance carrier.
This unique "hands on" role serves to ensure that the best interests of the group and its members as a whole remain foremost for the Group Manager. Further, it for this reason that the Group Manager may only be compensated by the group members and not the insurance carrier. There can be no conflict of interest with this arrangement!
Since asking the right questions is the key to finding out if something is right for your business, we have selected some of the more common questions and even a few not so common in order to assist you in deciding if our Groups are right for you.
Q: Can anyone enroll in your safety group programs?
A: NO! While we love to hear from prospective members we can not enroll just any business into a Group. Each Group is focused on a particular nature of business or trade. Further, for the financial well being of the Group, we seek businesses with a favorable loss experience and a minimum premium level. We do however offer alternative programs to help those prospective members with poor loss experience by improving their situation so that they may in time become eligible for enrollment.
Q: Do the losses of the other members affect my firm's individual experience rating (MOD)?
A: No. Each member maintains their own loss experience rating. Losses of the entire Group can only effect the group discount or the production of a dividend, for this reason we must always be selective on membership and always encourage workplace safety.
Q: Are all NYSIF policy holders automatically members of a safety group?
A: No. Employers wishing to participate in our safety group programs must apply and enroll through our firm. This also applies to current NYSIF policy holders in the general pool. Only members of safety groups are eligible for the unique benefits of the group and for participation in any dividends* as may be earned by the group.
Q: Why are safety groups more attractive than other workers' compensation insurance programs?
A: Traditionally, safety groups outperform competitors over the long haul. Members have come to realize that the longer they participate, the more successful they will be at keeping workers' compensation insurance premiums under control. Remember too that Group stability and your own injury prevention efforts enables us to negotiate more attractive premium discounts, earned dividends, and maintain the financial "good health" of the program...All of which is beneficial to our members!
Q: Is there a fee for the services of Innovative Risk Concepts, Inc.?
A: Our firm, as Group Manager, does not work for the insurance carrier and therefore does not receive any commissions or fees from them. Each Group member pays an annual service fee based on a percentage of their premium. This fee, including the method of calculation is strictly regulated by NYS Workers' Compensation law.
Q: Are there any charge backs to members if the Group suffers a bad year with losses?
A: No! Members' policies are "guaranteed cost" policies. This means that premiums paid for a given year is all that a member is responsible for. Since there are no "joint and several" liability issues, members can not be assessed additional premiums in the future for past losses.
Q: What is expected of a Group member?
A: As with all our safety group programs we encourage all our members to provide a safe workplace for their employees. We also strongly encourage members to comply with federal, state, and local health, employment, and safety regulations. Remember, since a favorable loss experience on the part of all members is what drives the group's success in negotiating premium discounts and dividends, it is in the best interest of everyone concerned, including your employees, to maintain a safe and healthy work environment.
Q: What is required to enroll in one of your safety groups?
A: A qualifying classification code, meeting minimum premium requirements, and a favorable loss experience is essential to an otherwise simple process. Our representatives will be happy to assist you in applying to NYSIF and enrolling in our group. Once enrolled we will start managing the various aspects of you policy and address your concerns.
We hope this section has been helpful, certainly if you have any other questions or want to discuss enrollment contact us...
800-652-2015 or email us by simply clicking here!
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