Levitt-Fuirst - Safety Group 458: Workers Compensation Insurance for the Building and Construction Industry

How does it work?
Since 1951, Safety Group 458 has consistently saved contractors money on their Workers Compensation insurance. The Group represents nearly 1,000 contractors with strong safety records, and obtains discounts off of the NY State workers compensation rates. The Group has also paid a dividend to the policy holders every year since 1951. During the last 10 years, the dividend has ranged from 20% to 45%. The combination of rate discount and dividend easily justifies the 10% service fee and the required Builders Institute membership.

The Group purchases reinsurance to reduce the impact of large claims on Group financial performance and to maintain the ability to provide rate discounts and dividends each year. In addition, the Group has amassed a $30,000,000 contingency reserve fund to absorb large claims and losses.

Importantly, when you are in a safety group, there is no possiblity of additional charges or assessments. You never have to sign a contract holding you jointly and severally liable for the finances of the group, as is the case with some other worker's compensation program.

Who is eligible?
Almost any business associated with the construction industry is eligible for Safety Group 458, including: general contractors, sub-contractors, suppliers, landscapers, remodelers, and road builders. The contractor must have a good safety history and pay at least $5,000 in workers compensation premiums.

Safety Group History
The Group has saved companies up to 62.5% on workers compensation premiums as a result of an advance policy discount and an annual dividend.

Who handles claims?
Initially, claims are reported to the Group’s own claims service, by calling 877-458-2667. The service assists the employer with submitting required forms and insures that the claim is properly reported. The service contacts the injured employee to learn more about the claim and determine whether there were pre-existing conditions or other factors that could reduce the cost of the claim to the employer. The service also calls the medical provider to confirm correct costs are being charged to the claim.

What about small claims?
Employers are not required to inform their insurance carrier about minor injuries to workers on the job, as long as the claim is properly documented from the beginning. Employers can pay the costs associated with minor job-related injuries directly. If the injury ultimately requires more costly care, the claim can be submitted to workers compensation at a future date. Direct payment of small claims by the employer helps to improve the employer’s experience modification, which helps reduce workers compensation premium costs. Frequent reported claims are more damaging to an experience modification than a single severe claim.

What is the PAP credit?
In 1995, the NY Workers Compensation Board created a credit to help benefit contractors who pay high hourly wages to their employees, in order to help level the playing field with respect to workers compensation premium costs. If a contractor pays more than $15.50 an hour, on average, for construction payroll, the business may be eligible for this credit. To obtain the PAP credit, the business must have an experience modification, and must submit a payroll form annually. Contact Levitt-Fuirst Associates, LTD. to obtain the form.

What is the payroll cap?
To further equalize workers compensation premiums between contractors paying high and low wages, The State of New York enacted a law in 1999, which capped the amount of payroll on which employers were required to pay workers compensation premiums.

Safety Group 458: Workers Compensation Insurance for the Building and Construction Industry

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