As we talk to business owners about their workers’ compensation insurance options, that’s a question we hear a lot – what is a safety group? A safety group is a workers’ compensation program that groups like businesses together to reduce their costs – it spreads the risk from the individual policyholder to the entire group. With a safety group, each company gets their own insurance policy and experience modification factor based on their losses.
The premiums of the entire group are pooled together, claims and expenses paid, reserves set aside for increases in ongoing claims and the rest is returned in the form of a dividend. Unlike a trust, safety groups are fully insured and members can never be assessed for additional premiums beyond their earned premium for a given year.
Some safety groups, including ours, also have unique features such as:
CLAIM MANAGEMENT: The key to successful claim management is early intervention. A team of professionals including Registered Nurses will facilitate communication between the injured worker, employer, and medical provider within 24 hours. Proactive claim management insures a positive outcome.
UNDERWRITING: Current membership is protected by insuring that any new members have excellent loss experience and will make a positive contribution to the group. Payroll accuracy through a 6 month check up helps protect against audit surprises.
EXPERIENCE MODIFICATION ANALYSIS: There is a tremendous amount of data that goes into calculating an experience modification factor. We have found that 1 out of 3 have mistakes so an annual check for accuracy insures your mod is correct..
The Flanders Group manages 6 workers compensation safety groups through the New York State Insurance Fund.
Safety Group # 512: New York State Real Estate Owners and Managers
Safety Group # 453: New York State Horticulture/Floriculture Industries
Safety Group # 563: New York State Automobile and Recreational Vehicle Dealers
Safety Group # 579: The Select Waste Industry of New York
Safety Group # 517: New York State Marinas and Recreational Boat Sales and Service
Safety Group # 572: The Select Manufacturers Association of New York
A safety group program is a unique choice in a sea of workers’ compensation options. To learn if a safety group is right for your business, call The Flanders Group at 800-462-6435.