A safety group is a loss sensitive insurance program that enables employers in the same industry to pool their insurance premiums with the goal of reducing the cost of workers’ compensation insurance. It gives small and medium sized employers the opportunity to participate in the type of program that is usually reserved for much larger employers.
A NYSIF safety group operates on the same principle as an insurance carrier. While it is possible that an individual group member may have substantial losses in any given year, most of the members of the group will not. The group program spreads the risk from the individual policyholder to the entire group. That often allows part of the premiums to be returned to the members in the form of dividends. To reduce the cost of workers’ compensation insurance, safety groups encourage measures to prevent accidents and make the workplace as safe as possible.
NYSIF’s safety group program is a fully insured plan. Safety group members can never be assessed for additional premiums beyond their earned premiums for a given policy year. That makes NYSIF’s safety group program truly safe for the employer from both a financial and an insurance standpoint.
History of safety groups
NYSIF’s safety group program is designed for longevity and stability. Our oldest safety group dates back to 1923 and we have 25 safety groups that are at least 50 years old. NYSIF is supportive of the long-term success of its safety groups. Over the years, NYSIF has consistently offered upfront discounts and year-end dividends to group members based on group performance. The long term viability, success and performance of NYSIF safety groups make them attractive to many NY employers. Our safety group program offers employers a stable, low risk, low cost, fully insured alternative to private carrier insurance plans and self insurance trusts.
Safety group dividends
Although dividends cannot be guaranteed, the success of our safety groups is evidenced by their consistent dividend histories. In the past 10 years, NYSIF’s safety groups have returned almost $1billion in dividends to their members. Dividends normally are declared between six and 10 months after the end of the common group policy period. In addition to dividends, most group members receive advance discounts on their policy renewals. It is the potential combination of an upfront discount and a year end dividend that makes safety groups so attractive.
Joining a safety group
While NYSIF’s safety group program encompasses many industries, there are not always safety groups for every type of business. Businesses interested in joining a safety group must first contact the group manager(s) who operate groups in particular industries. Anyone wishing to learn more about NYSIF’s safety group program or to determine if there is a safety group available for them can contact:
LPL Risk Management Ltd.
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