The California Manufacturers & Technology Association (CMTA) announced recently the formation of a partnership with the State Compensation Insurance Fund (SCIF), California’s largest work comp insurer, through which it will offer a group workers’ compensation insurance program for its members.
“While not a part of the recent workers’ compensation reforms, it is another step towards making rates more reasonable for small and medium sized manufacturers,” said Martha Pearson, CMTA Service Corporation president. “As an industry, manufacturers have seen their rates increase two and three fold over the last few years and this new program will bring significant savings to the companies that need them the most.”
After years of being unable to form a manufacturers group due to a severe restriction on group and industry classifications, CMTA sponsored SB 1007, a bill amending the insurance code to include “manufacturing” as an employer group recognized to be engaged in a common trade or business and eligible to form a workers’ compensation group insurance program. Without this statutory change, CMTA and SCIF would not be able to offer such a group benefit.
“CMTA members have long seen other industries purchase insurance at discounted rates and now manufacturers can as well,” Pearson concluded.
The eligible group includes a schedule of over 150 workers’ compensation classes which should allow most manufacturers to be eligible. Participation should provide long and short term benefits through improved management and loss control.
Topics Mergers & Acquisitions Workers' Compensation Manufacturing
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