Employers Holdings: Expansion of Discount Workers’ Comp to Continue

Employers Holdings Inc. said it's expanded its discounted workers' compensation coverage to small businesses in four more states through the National Federation of Independent Business, and will expand the program into nine more states in July.

Employers launched its relationship with the NFIB in 2009, when the NFIB endorsed Employers' California program. An endorsement for Florida followed in 2010, followed by several other states earlier this year.

Last month, the company said it was expanding its NFIB discounts to companies in Indiana, North Carolina, Virginia and Missouri, said David Quezada, senior vice president, general manager of strategic partnerships and alliances for Employers.

In July, the company plans to launch NFIB-endorsed programs in eight more states: Minnesota, Kentucky, South Carolina, Nevada, Idaho, Utah, Iowa and Oregon, plus a co-endorsement in a ninth state, Montana.

The company was already active in those states, Quezada said.

"Our focus is on small employers. We are America's small business insurance specialist," Quezada said.

Depending on the state, qualifying NFIB members are eligible to receive either a 5% discount or a 5% flat dividend on workers' compensation insurance policies with Employers, in addition to other discounts or dividends offered by the company. Members can access this benefit through Employers-appointed independent agencies.

Employers currently writes business in 30 states, plus Washington, D.C.

"That's why this is a great relationship with us," Quezada said. "NFIB also focuses on small business."

About 97% of the businesses that are members of the NFIB have less than 50 employees, which aligns with Employers' business focus, he said.

Employers Holdings Inc. (NYSE: EIG) is a holding company with subsidiaries that write workers' comp coverage for small businesses engaged in low-to-medium hazard industries.

Insurance is offered by Employers Insurance Company of Nevada, Employers Compensation Insurance Co., Employers Preferred Insurance Co., and Employers Assurance Co. All currently have a Best's Financial Strength Ratings of A- (Excellent).

Employers was launched in 2000 as a private domestic mutual insurance company, and the successor to Nevada's state-run workers' compensation insurance plan. As of Jan. 1, 2000, all the assets were transferred from the state-run fund to Employers, which assumed all of the liabilities related to the transferred assets. The Nevada Legislature ended the 86-year monopolistic workers' compensation environment in Nevada in 1999, according to BestLink, which provides online access to A.M. Best's database of insurance information.

In 2002, Employers expanded to the West Coast with the acquisition of business from Fremont Compensation Insurance Group. In 2008, Employers expanded to the East Coast with the acquisition of AmCOMP Inc., according to BestLink.

The company formed a mutual holding company in 2005, then launched an initial public offering in 2007. A year ago, Employers Holdings Inc. said it would eliminate 160 positions to net savings of $5.8 million in 2010 (BestWire, July 6, 2010).

Shares of Employers were trading at $16.15 a share midday on May 24, up 0.37% from the previous close.

(By Meg Green, senior associate editor, BestWeek: Meg.Green@ambest.com)