ABC Group Trust

Who has the lowest workers’ comp costs in New Hampshire?

The ABC NH Self-Insured Group Trust for Worker’s Compensation is the only self-insured group program for contractors in New Hampshire

The Self Insured Workers’ Comp Group Trust was formed in 1995 by ABC to provide members with a high quality, cost-efficient, workers’ compensation alternative to the commercial market.  If you work hard and get results, you deserve the reward.

Key Features

• A heavy investment in safety and aggressive claims management. In 2013, member companies received an average of 50 hours of specialized safety training and job site inspections, resulting in the fifth consecutive year in which the group averaged only one claim for every $1 million of payroll.
• Investment income and profit. The premiums from partners in the Trust are retained and managed by the Trust, it is their money and expectations are established for efficient and aggressive management and operations.

Statistics

• .85 Average Experience Modification
• 30% Five Year Average Loss Ratio
• 1 Number of Claims per $1 Million Payroll
• $2.6 million Dividends Paid Since 2010

Current Members

Contractors Should be Aware of ALL Options for Workers' Compensation Coverage
When it comes time for contractors to begin planning for the renewal of Workers' Compensation coverage, insurance brokers work to bring their clients the most appropriate program.  Currently, there are many options available in the fully insured commercial insurance market, including dividend programs.  However, there is only one self-insured group trust available to contractors – the ABC New Hampshire Workers' Compensation Self-Insured Group Trust.  Interestingly, brokers typically don't inform their clients of this option even though it may be most appropriate and it may be an exciting new approach to effectively manage one of the most significant expenses and operational issues a company has.

A self-insured group, or trust, is a legal entity established to provide workers' compensation coverage to a select group of employers.  There are many benefits to the trust partnership.  One is Investment Income.  Premiums for all insurances are paid “up front” prior to any related expense being incurred.  Also, any claims that may occur have a “long tail”.  This means workers' compensation claims can remain active for years after an injury.  The “up front” premiums and “long tail” with active claims create significant cash flow from the funds that are held in investments.  With the ABC Self-Insured Group Trust the investment income flows to the trust partners rather than to an insurance company.  For example for 2008 the ABC Self-Insured Group Trust has budgeted for approximately $300,000 in investment income.  In addition to investment income there is Profit.  Rather than paying an insurance company a premium that will never be returned, the premiums from partners in the ABC Self-Insured Group Trust are retained and managed by the Trust, it is their money and expectations are established for efficient and aggressive management of operations, including loss control, claims management and all related activity.  Excess funds, or profits, can be distributed as dividends, used to reduce current year funding requirements, or left in an interest bearing account to meet future obligations, as determined by the Trust members.  For 2007, more than $2,500,000 has been earmarked for member dividends. 
 

When making the important decision concerning Workers' Compensation coverage, contractors are urged to ask their brokers:

• Do you think my company is financially sound and committed to safety?
• Do you think my company should benefit from its efficient operations and efforts to control losses?
• Is my company getting the aggressive loss control and claims management service we deserve?
• How can I turn my workers' compensation expense into an investment?
• Do you think I should at least consider the ABC Self-Insured Group when making my decision concerning workers' compensation coverage?