NYSIF Safety Groups
A safety group is a loss sensitive insurance program that enables employers in the same industry to pool their insurance premiums with the goal of reducing the cost of workers' compensation insurance. It gives small and medium sized employers the opportunity to participate in the type of program that is usually reserved for much larger employers. A NYSIF safety group operates on the same principle as an insurance carrier. While it is possible that an individual group member may have substantial losses in any given year, most of the members of the group will not. The group program spreads the risk from the individual policyholder to the entire group. That often allows part of the premiums to be returned to the members in the form of dividends. To reduce the cost of workers' compensation insurance, safety groups encourage measures to prevent accidents and make the workplace as safe as possible. NYSIF's safety group program is a fully insured plan. Safety group members can never be assessed for additional premiums beyond their earned premiums for a given policy year. That makes NYSIF's safety group program truly safe for the employer from both a financial and an insurance standpoint.
History of Safety Groups
NYSIF's safety group program is designed for longevity and stability. Our oldest safety group dates back to 1923 and we have 25 safety groups that are at least 50 years old. NYSIF is supportive of the long-term success of its safety groups. Over the years, NYSIF has consistently offered upfront discounts and year-end dividends to group members based on group performance. The long term viability, success and performance of NYSIF safety groups make them attractive to many employers. Our safety group program offers employers a stable, low risk, low cost, fully-insured alternative to private carrier insurance plans and self insurance trusts.
Types of Safety Groups
NYSIF has two types of safety groups:
1.Trade Groups: for employers in the same industry, in which eligible employers need only to belong to the industry that the group represents;
2.Trade Association Groups: for employers who are in the same industry and who belong to a particular industry association, in which employers are required to be dues paying members of the industry association that sponsors the safety group.
NYSIF safety groups by industry:
- Contracting/Construction - general contracting as well as particular trades such as masonry, carpentry, painting, electrical work, plumbing, road and bridge construction, sewer and water main work, elevator repair and installation, iron and steel erection, tiles and floors, door and window installation, glaziers, siding and roofing, HVAC, landscaping and other operations in the construction industry.
- Dealers in scrap iron, junk and paper stock.
- Manufacturing - paper goods, electrical apparatus, plastics goods, machinery and machine tools, iron or steel goods, jewelry, paint, food products including bakers, furniture, architectural woodwork and clothing.
- Truckers, furniture movers (household and commercial) and private sanitation.
- Printers and newspaper publishers.
- Public and private elementary, secondary, colleges and other post-secondary schools.
- Most general Retail and Wholesale operations as well as dealers in clothing, jewelry, building materials, plumbing supplies, new and used automobiles, recreational vehicles, supermarkets, groceries, stationers, and contractor's equipment.
- Public entities - county governments, local governments and public authorities.
- Physicians, dentists, veterinarians and other types of healthcare related businesses.
- Operators of farms, children's camps, bowling lanes, funeral homes, busses and other modes of transportation, hotels, laundries and laundromats, hospitals, marinas, real estate managers and owners, parking garages, ski areas and ice skating rinks, machine shops and electroplating operations.
- Services - building service contractors, security guards, gas stations and auto repair garages.
- Stock brokers and other financial services.
- Restaurants
Safety Group Dividends
Although dividends cannot be guaranteed, the success of our safety groups is evidenced by their consistent dividend histories. In the past 10 years, NYSIF's safety groups have returned almost $1billion in dividends to their members. Dividends normally are declared between six and 10 months after the end of the common group policy period. In addition to dividends, most group members receive advance discounts on their policy renewals. It is the potential combination of an upfront discount and a yearend dividend that makes safety groups so attractive.
Safety Group Managers
Each safety group has a group manager who is chosen by the group members. That person or entity may be an insurance broker, a risk manager, a trade association or someone else with workers' compensation knowledge and professional credentials. The group manager represents the group as a whole and on behalf of individual members of the group in dealing with NYSIF. The group manager serves as the liaison between NYSIF and the group and is responsible for submitting all applications on behalf of prospective members to NYSIF.