2014 was another record year for the 4A’s Workers’ Compensation Program, with covered payroll growing to $9.3 billion and insured employees increasing to 139,000. As a result of favorable claims trend, the dividend rate rose slightly from last year, while the 4A’s Captive insured more payroll and employees for lower premiums in 2014.
The program’s Board of Directors, comprised of 4A’s member representatives and specialized counsels, declared the 2014 dividend in July’s meeting. The $9.6 million dividend equals 43% of policy cost and 59% 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 34-year history, has produced a dividend equal to 44.6% of the policy cost and 60% 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; 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 email 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 and territories: North Dakota, Ohio, Washington, Wyoming and Puerto Rico.