Texas Mutual Insurance Company awarded the Emergency Service Organization workers’ compensation purchasing group with an $80,474 group dividend yesterday. To date, ESO has received over $260,000 of Texas Mutual group dividends.
The group dividend is separate from the $50 million general dividend plan that the company announced last month. Some ESO members may receive part of both dividends.
“We’re very pleased with ESO’s safety efforts,” said Ken Lauber, Texas Mutual vice president of field operations. “With continued focus on safe workplaces and accident prevention, as well as managed growth of the group, we’re optimistic that ESO can continue improving its overall loss ratio, increase its premium volume, and possibly earn future group dividends.”
A group’s volume and loss ratio are key components in determining whether it qualifies for a dividend. The greater the group’s volume and the lower its overall group loss ratio is, the higher its dividend percentage will be.
State law allows employers in similar businesses to form purchasing groups to help reduce their workers’ compensation insurance premiums. Each group member retains its own experience modifier, yet earns a premium discount based on the entire group’s premium. For example, if a small employer with a $2,000 premium joins a purchasing group with $500,000 in annual premium, the small employer will get the same premium discount as a large company with a $500,000 premium.
“We also give group members an industry-specific safety plan to adopt,” added Lauber. “And they have access to our expert claim and loss prevention services.”
Topics Texas
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