$8.8 Million Dividend to be Paid to 4A’s Workers’ Compensation Program Policyholders

2015 was another record year for the 4A’s Workers’ Compensation Program, with covered payroll growing to $10 billion and insured employees increasing to 164,000. The 4A’s Captive continued a favorable claims trend while insuring more payroll and employees for less premium in 2015.

The program’s Board of Directors, which is comprised of 4A’s member representatives and specialized counsel, declared the 2015 dividend in July’s meeting. The $8.8 million dividend equals 40% of policy cost and 56% of total 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 35-year history, has produced a dividend equal to 43.1% of the policy cost and 58.4% of the total premium cost on average over the last 5 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 protected]. More information is also available on the 4A’s Benefits website.

Note: 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.