About New York Compensation Managers’ Self-Insured Trusts
Save on escalating worker’s
compensation costs.
What Are Self-Insured Trusts? Self-Insured Trusts are not new. They are widely recognized as a tool for small-to-medium size companies who do not have the size or financial capacity to self-insure on their own, but still want to assume control over their workers’ comp costs and benefit from cost-saving opportunities that self-insurance provides. Self-Insured Trusts allow employers a unique and proven method of funding their statutory workers compensation coverage at costs that are lower than the New York State Rating System. Why Should We Enroll In A Self-Insured Trust? As an alternative to traditional workers’ compensation insurance typically secured through large insurance companies, Self-Insured Trusts provide a means for employers to gain greater control over their losses and claims costs, while providing a substantial pool to share in the cost of claims and expenses. Premiums paid by members are used to pay covered losses, claims administration and costs associated with the management of the group, such as loss control, legal, accounting, actuarial, and excess insurances. Any surplus from either the claims fund or administrative expense fund are returned to the Trust members as dividends on a pro rata share basis or through the reduction of future rates.
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