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Landram noted that Builders Insurance distinguishes itself by
providing workers’ comp coverage – as well as comprehensive safety and
fraud-reduction measures – specifically designed to help participating
companies reduce on-the-job injuries, and in doing so, dramatically reduce
both workers’ comp claims, and the cost of those claims. Because of
this commitment to safety, Builders Insurance is able to offer retro premium
programs and other discounts and benefits to policyholders.
By
industry standards, the Builders Insurance retro program is very generous.
The total return of premiums under this retro program – in the
Reno/Northern Nevada area alone – was just over $200,000.
Half of this total was handed out at the ABC meeting last week –
with the remainder paid of the Reno/Northern Nevada area retro return of
premium to be paid out over the next twelve months.
Among
the 19 recipient companies honored at the ABC luncheon, several Reno-area
employers earned substantial returns for keeping their on-the-job injury
rates low. Moana Nursery, one of
northern
Nevada
’s largest suppliers of landscaping products, left the meeting $32,684
richer; Precision Plumbing & Heating received $23,064, and Artistic
Fence got $20,422. In each case,
these retro-program rebates rewarded exceptional and effective on-the-job
safety programs operated by these companies, and supported through classroom
and on-the-job safety training programs by Builders Insurance Company and
its administrator, Risk Services-Nevada.
The
plan was first put together in 2003 by Wes Ingram of Insurance Solutions
Group and Clara Andirola, executive director of ABC Sierra Chapter.
Members of the association who signed up for worker’s comp with
Builders Insurance were invited to join the program, and the disbursements
reflected results from the 2004-2005 policy year.
Ingram said that ABC Sierra members
worked hard to control losses so the program would return as much as it did.
“Builders Insurance already offers insurance discounts of 10 to 15
percent for most policies, so its’ already extremely competitive,”
Ingram said. “Now, added to
those savings, is the substantial return ABC Sierra members just received.
It’s amazing.”
The
Builders Insurance retro program includes all ABC Sierra Chapter members who
are also BIC policyholders, as a whole, so losses were tabulated as a group
instead of doing so on an individual basis.
“This
was one of the reasons the employers saw hefty returns,” Landram said.
"Normally retro programs like this are reserved for employers
who pay more than $100,000 a year, Landram said.
"This program gives smaller companies a chance to participate
because their premium is added together as if they were one big company.”
Some
retrospective rating programs offered by carriers set the maximum premium
110 or 120 percent or more, according to Landram, so if the group
participant should sustain high losses they could actually pay more than
normal modified premium.
“With
Builders Insurance, however, under no conditions can you pay more than
normal modified premium, based on actual results,” Landram said.
“This year, the retro return was at 20 percent.
Within a couple of years those who stay in the program long-term,
could start seeing multiple checks each year."
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