Another record year for the 4A’s Workers’ Compensation Program was seen in 2011, with covered payroll growing by over $1.2 billion to $8.3 billion, and insured employees increasing from 102,000 to 116,000.
The Program’s Board of Directors, which is comprised of 4A’s member representatives and specialized counsel, declared the 2011 dividend in July’s meeting. The $10.1 million dividend equals 45% of Policy cost and 60% of Premium cost (Policy cost includes terrorism charges, surcharges, and taxes; Premium cost, the term most commonly used, excludes these expenses).
The Program, which has paid a dividend every year in its 32-year history, has produced a dividend equal to 40% of the policy cost and 49% of the premium cost on average over the last 10 years. By spreading claims risk and administrative costs across such a large group, the 4A’s Workers’ Compensation Program continues to provide the lowest year-over-year net cost available in the industry.
The Program enjoys a dominant share of the market, insuring over 70% of the industry’s advertising and marketing communication companies – another indicator of its success.
Participation in the Program ranges from large holding companies to very small companies, because 4A’s members of all sizes benefit from the low net cost. The insurance company profit, which in other insurance policies is retained by the insurance carrier, is returned to each policyholder in the form of a dividend.
If you do not participate in the program and would like to obtain a quote, please e-mail the face pages of your in-force policy to: email@example.com.
Due to State monopolies in this insurance line, we are unable to write coverage for employees in the following states: North Dakota; Ohio; Washington; Wyoming; and Puerto Rico.