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Workers’ Compensation Facility

Workers’ Compensation Facility

Alternative Asset Managers Frequently Overpay for Workers’ Compensation Insurance. Do you?

Workers’ Compensation insurance is a regulated and mandatory form of insurance; every business with more than five employees must buy workers’ compensation insurance. For many Alternative Asset Managers, this insurance comes at a high price based solely on total annual compensation with little to no recognition of low loss experience. While the industry class has historically operated with excellent loss ratios, many companies have been unable to obtain any program benefits beyond guaranteed cost due to their size.

To address this market disconnect, Vanbridge created its Workers’ Compensation facility, specifically designed for Alternative Asset Managers, Hedge Funds and Private Equity firms. The facility provides competitive rates at policy inception and a dividend of up to 45% of standard premium based upon the loss experience of all insured participants. The dividend is paid out six months after policy expiration. Over the last 10 years, the facility has successfully handled over $49M in cumulative premium and returned approximately $11M of dividends to participating clients.

Benefits of the program include:

  • Eligibility

    In the facility, ALL companies would be eligible for up to a 45% dividend based on the aggregate annual loss history of all participants.

  • No Minimums

    No minimum premiums or restrictions on company size.

  • Transition Program

    New accounts can be transitioned to the facility renewal date (December 2024), via short-term “stub” policies on a pro-rated basis in order to avoid short-rate cancellation penalties from other carriers.

  • Claims Capped

    To protect the dividend against shock losses, claims are capped at $250k per occurrence within the dividend calculation.

  • Separate Policies

    Each company is quoted and bound on separate policies and continues to maintain its own separate experience mod factors.

  • Calculations

    Dividend calculation based on losses valued 6 months from policy expiration; One-time calculation, no LDFs or claw backs; Checks cut and sent out immediately thereafter.

  • A-Rated

    Facility insurance carrier is A XV rated by A.M. Best and is able to provide competitive pricing for additional lines (Package, Auto, Umbrella and Foreign).

  • Seamless Transition

    Transition is seamless as Vanbridge allows clients to access its program through their current insurance broker. No broker change is needed.

We are excited to continue to grow this niche program for the benefit of our clients and broker partners and look forward to the opportunity to share how our Workers’ Comp facility can benefit your firm. To learn more, contact Mike Fitzsimmons at 646.572.9352 or [email protected].