The National Air Transportation Association is celebrating a highly successful first-year anniversary of the NATA Workers’ Compensation Insurance Program, administered exclusively by Beacon Aviation Insurance Services. As we move forward into our second year, the question has come up: “Should I select the NATA Workers’ Compensation Insurance Program strictly because of the price?” The short answer is no.
To give you an overview of workers’ compensation, you should know that almost every business with employees in the United States faces the need to acquire workers’ compensation insurance. Most states (with a few exceptions) essentially require employers to purchase an insurance policy to handle their statutory obligations for workers who are injured or made ill due to a workplace exposure. Whether your business is small or large, handling the expense and effort of meeting statutory obligations is a challenge.
Workers’ compensation laws provide fairly comprehensive and specific benefits to workers who suffer workplace injury or illness. Benefits include medical expenses, death benefits, lost wages, and vocational rehabilitation. Failure to carry workers’ compensation insurance or, otherwise, meet a state’s regulations in this regard can leave an employer exposed not only to paying these benefits out of pocket, but also to paying penalties levied by the states. So, how do you balance the need of providing this vital coverage while protecting your bottom line?
First, we should examine how the costs of workers’ compensation insurance are created. Your premium includes the estimated annual pay of your employees, multiplied by the rate (cost) for each of your individual class codes (specific job classifications). This rate is then combined with other taxes, fees, and either debit or credits (discounts or additional premium based on factors, such as loss history and optional coverage) that are available to your specific company. Once all of those are added up, we come up with your specific estimated annual premium.
The closest thing there is to a uniform set of rules for premium computation was established by the National Council on Compensation Insurance (NCCI). This organization creates policy forms and writes the rules for premium computation in the majority of states.
Now that you have your premium, you should also look at: what is the carrier’s history and financial strength?; will your claims be handled quickly and efficiently; and, what other services are available to help you operate a safer work environment and ultimately save premium dollars?
Backed by A-Rated Companion P&C (a subsidiary of Blue Cross Blue Shield), the NATA Workers’ Compensation Insurance Program™ includes all applicable credits, access to one of the most comprehensive loss control and safety minded programs in the industry, direct access to the nation’s largest physician and provider networks, no-cost, loss control services, and an industry-leading dividend plan that pays out in full, just 10 months after your policy’s expiration date.
Along with checking out all the facts of your coverage, you may also want to look into recommendations from industry leaders. One recommendation comes from NATA President & CEO Thomas L. Hendricks, “NATA is thrilled with the growth and member acceptance of this program in its inaugural year. Our participating members are finding the EZ Pay option plans, quicker dividend payouts and up-front rewards, for those with the best worker safety experience, to be the most attractive benefits of this program.”
Beacon Aviation Insurance is available to help answer any of your questions or concerns, offer you more information on your specific premium, and work with your agent to obtain a quote from the NATA Workers’ Compensation Insurance Program.
You can reach Beacon Aviation Insurance directly at 941-953-5390 or firstname.lastname@example.org; and through your current insurance agent.
Submitted by Bob McManus, CPCU
Beacon Aviation Insurance Services
Article first appeared in NATA’s first quarter Aviation Business Journal. Click here to read more.