Workers Compensation: Group 458 / Construction

Group 458/ Construction

• Levitt Fuirst Associates, Ltd. and The Builders Institute of Westchester co-manage Safety Group 458, which provides workers compensation insurance to over 1,000 building trade contractors throughout the state.

• Safety Group 458 offers savings of up to 55% off standard Workers Compensation premiums.

• Safety Group 458 has provided its insureds superior customer service at discounted rates since 1951.

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

A State Insurance Fund Safety Group is a cost-plus plan of Workers’ Compensation Insurance producing low cost non-profit coverage for groups of employers with similar operational hazards.

A principal objective of a Safety Group is to prevent or reduce industrial accidents. As an incentive to Group members to practice safety, the State Fund, after deducting certain expense charges and the cost of the Group’s own claims cases from the aggregate premium, returns the balance of the premium to the Group account. Hence, every dollar saved by a prevented accident is a WHOLE dollar returned to the Group.

Members will benefit by savings in the form of advance discounts and dividends. The Group prudently reserves part of its savings in an interest earning Contingent Balance (surplus) account.

Safety conscious employers are additionally rewarded with uninjured employees and uninterrupted production and lower experience modifications.

Each Group member is issued a separate policy. It is non-assessable and it provides the employer with a complete release from all of his liability under the Workers’ Compensation Law.

Unlike Group Self Insurance Trusts, there is no joint & several liability in a State Fund Safety

Group. The basic rates applicable to each policy are modified by any Experience Rating to which the assured may be entitled on the basis of the risk’s own previous claims experience. Members, therefore, enjoy the benefits of individual and group coverage’s combined with the advantage of guaranteed cost coverage.

The privilege of establishing and maintaining Safety Groups is extended by the State Fund to only qualified Groups. A principal requirement is the ability to implement accident prevention programs and to supplement State Fund claims handling activities. For practical purposes, these and other required functions are best provided by a Group Manager who maintains a staff of safety, claims and underwriting specialists.

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 25% to 30%. 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 $40,000,000 contingency reserve fund to absorb large claims and losses.

Importantly, when you are in a safety group, there is no possibility 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 55% on workers compensation premiums as a result of an advance policy discount and an annual dividend.

Who handles claims?

Initially, claims should be reported to the Group 458 claims department at 914-457-4239 or email us at dpremuto@levittfuirst.com. Our claims department will assist the employer with submitting required forms and insure that the claim is properly reported. The claims department will contact 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. Finally, the claims department will call 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. Contact Donna Premuto at dpremuto@levittfuirst.com.

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 $25.25 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 or visit NYCIRB’s website at http://cpap.nycirb.org/.

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.

For more information please click the link below:

http://ww3.nysif.com/Workers_Compensation/Policyholders/About_Auditing/Payroll_Limitiation.aspx

Make sure your subcontractors have the correct New York State statutory workers compensation coverage to avoid being billed for them on audit.

Contact us or verify their coverage on-line at this Comp Board’s website: http://www.wcb.ny.gov/icpocinq/icpocdisclaimer.jsp

How do I find out if my company is eligible to join Safety Group 458?

Contact Marc Spar at 914-457-4224 or at mspar@levittfuirst.com.

How do I get workers’ compensation certificates?

Click here pmessina@levittfuirst.com to send your request to Pat Messina. You can also issue your own certificates on-line at:

http://ww3.nysif.com/eyebrowpages/onlineservices/dbonlineserviceoverview/dbcertificates.aspx

NYSIF PAYGO

The NYSIF PAYGO is a simple and convenient way for eligible policyholders to pay their workers’ compensation insurance through approved payroll processors.

• Eliminates down payment requirements

• Calculates premium based on actual payroll

• Calculates more accurate premium payments, resulting in smaller audit adjustments

• Allows policyholders to match payments to cash flow

You can read more about PAYGO by clicking here:

https://ww3.nysif.com/home/employer/WCpolicyholder/AboutYourBill/PAYGO