Filling an important gap in the workers’ comp space

There’s been a an important gap in some Worker’s Comp coverage – and Safety National has a new product they believe will fill that gap and allow brokers to fulfil an important need

Workers Comp

By Joe Rosengarten

In an attempt to cater to the specific needs and unique business profile that most large employers have, Safety National has launched its new Large Guaranteed Cost Workers’ Compensation program. We caught up with Tom Hebson, Vice President – Large Guaranteed Cost Workers’ Compensation and Captive Services at Safety National, to ask about the key drivers behind the program’s creation and to find out about some of its highlights.
 
“We had seen many business opportunities that, due to their ownership structure, business needs or financial condition, required a guaranteed cost program, and we saw an opportunity to expand our offerings to the marketplace through this product,” Hebson says. “These opportunities often had many of the characteristics of our core business offerings and matched up well with our overall capabilities.”
 
Hebson believes that offering the new product further enhances Safety National’s ability to offer a breadth of products to large employers. “Entering this market space was assisted by our broker partner feedback and their overall need they were facing with their larger client base,” he says.
 
The Large Guaranteed Cost Workers’ Compensation program is a 100% risk transfer product aimed at sophisticated large insureds - generally with premiums in excess of $1 million - that are focused on risk management and loss prevention. “We offer our suite of risk control products to our insureds and ensure that their claims are handled appropriately through our third party administrator partners and internal oversight and management,” Hebson says. “We offer claims management services and integral involvement that mirrors what may be available for a loss sensitive program.”
 
Although most insurers in the marketplace are not built to consider guaranteed cost programs for large customers, the need for these programs, for either structural, strategic or financial reasons, remains strong. “These large programs need to be tailored to the insured’s individual experience, not simply manually rated,” Hebson says. “We consider this product as an additional offering that allows us to tailor our offerings to our customers’ needs.”
 
Safety National has assembled a team of specialists and dedicated services for this program, but why was doing that a top priority? “We are looking for involved insureds who do not treat their insurance as a cost of doing business: our ideal client would recognize that even though they are buying a first dollar program, they have a responsibility to keep their employees safe and to advocate for their employees should they become injured,” Hebson says.
 
“Their investment in a risk management program is an investment in keeping their overall insurance costs under control.  Our specialists in risk control and claims support our insureds in executing on their risk management principles.”

The minimum premium eligibility for the Large Guaranteed Cost Workers’ Compensation program is $750,000.

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