Builders Insurance Co., one of Nevada’s two largest workers’ comp insurers, and the state’s largest contractor-only workers’ comp provider, has paid out a set of safety-related dividends and retro-premium returns to employers. This payout is part of the company’s ongoing Dividend and Retro programs, a series of successful efforts designed to motivate and reward safe work environments.
“On average, Builders Insurance client employers save 25 percent over previous workers’ comp coverage costs, and this savings is primarily due to our intense focus on worksite safety,” according to Tom Wheeler, vice president at Builders Insurance.
Among the top-dollar recipients of dividends and safety-related incentives was Framecon, a major residential framing contractor with some 600 employees. The company was given a check for $27,432 recognizing the company’s excellent safety results. The company’s loss ratio was just 25 percent during the year 2002 – a low loss ratio for contractors in the relatively high-risk residential framing field. This amount represents the third annual installment of its total safety-related dividend.
Another recipient was Kennington Plastering, a lath and plaster contractor with 125 workers. The company received $20,803 as part of Builders Insurance’s 2001 Dividend “B” plan. This was its third installment from this plan. Kennington Plastering’s overall loss ratio – the amount of injury claims costs versus premium paid – was a miniscule 6.35 percent.
Hirschi Masonry received $50,000 in return of premium. One payment was for the safety-related dividend plan, while the other for the Builders Insurance’s “retro” plan – an integral part of Builders’ high-quality, low-cost coverage. A retro plan has the final rate determined by the actual loss data from a policy-year, and Hirschi’s loss ratio was remarkably low. With 625 workers, Hirschi Masonry enjoyed a low loss ratio of only 9.02 percent. Hirschi’s CEO, Ken Kaufman, said it was the company’s efforts in the safety department that made the difference. “We really emphasize our safety program,” Kaufman said. “And we make every effort to keep people form being hurt at work.”
In addition to rewarding participating employers for exemplary safety records, Builders Insurance is supporting construction industry safety initiatives throughout the state. For example, Builders Insurance – and its associated business firm, Risk Services Nevada – have provided matching funds for a Federal Grant, administered by the University of Nevada, intended to explore ways of improving on-the-job safety among Hispanic workers. Federal OSHA studies have shown that Hispanic workers – especially young Hispanic males – are at the highest risk of on-the-job construction industry injuries or fatalities of any identifiable group. “Because our client firms employ so many young Hispanic men,” Wheeler explained, “we are glad to be able to help the University’s task force find new solutions for promoting on-the-job safety among this vulnerable, high-risk group.”
Photos from the presentation can be found at: http://www.nvconstructionzone.com/Builders_photos_Sept_2005.htm
Topics Commercial Lines Workers' Compensation Business Insurance Contractors
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