2018 was another great year for the 4A’s Workers’ Compensation Program, with covered payroll remaining steady at $10.5 billion, and insured employees of 151,000. The 4A’s Captive continues its favorable claims trend while insuring more payroll for less premium again in 2018. This overall reduction in the cost of insurance has provided a cash flow benefit during the policy year, while still providing a dividend.
The Program’s Board of Directors, which is comprised of 4A’s member representatives and specialized counsel, declared the 2018 dividend in July’s meeting. The $8.8 million dividend equals 43% of Policy cost and 63% 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 39-year history, enjoys a dominant share of the market, insuring over 70% of the industry’s advertising and marketing communication companies. 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.
Participation 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].
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.