What is a Workers’ Compensation Self-Insurance Program?

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Workers’ Compensation Self-Insurance Programs

Typically, employers pay a fixed premium to an insurance carrier for workers’ compensation coverage. However, employers may choose to go the self-insurance route, wherein the employer assumes the financial risk for providing workers’ compensation benefits to its employees. In other words, self-insured employers pay the cost of each claim ‘out of pocket’ as they are incurred.

According to the Self-Insurance Institute of America, it is estimated that more than 6,000 corporations and their subsidiaries nationwide operate self-insured Workers’ Compensation programs. Many other employers participate in group self-insured Workers’ Compensation funds, where they pool together with other companies to self-insure their collective Workers’ Compensation risks. Truck Writers is proud to offer a trucking-specific, workers’ compensation group self-insurance program.

Minnesota requires all employers to purchase workers’ compensation insurance or become self-insured. To learn about other state’s workers’ compensation requirements, click here.

Midwest Safety Group

Midwest Safety Group (MSG) is a Minnesota workers’ compensation group self-insurance program. MSG was established in 1991 when workers’ compensation insurance premiums were becoming unaffordable for most trucking firms. Donald Sullivan believed trucking companies could control workers’ compensation costs in this fluctuating market through rewarding the financially stable companies that supported a safe working environment.

Benefits of MSG

  • Over 25 years of proven success
  • As of January 2017, over $13 million has been returned to qualifying MSG members since its inception.
  • Consistent Rates
  • Average loss ratio of 41 percent (as of 12/31/2016)
  • Market specifically for truckers. Truck Writers can handle all of your other insurance needs.
  • MSG is overseen by the Minnesota Department of Commerce and Workers’ Compensation Reinsurance Association (WCRA).

What We Provide

  • Safety Committee
  • Lunch and Learn Opportunities
  • Annual Membership Meeting
  • Monthly Group Claims Report

Pre-Qualification

  • Minnesota domiciled trucking company
  • Minimum premium of $100,000
  • Financially sound
  • Profitable five (5) year loss history
  • Strong risk tolerance
  • Willing to share risk of group
  • Sound management, hiring and risk management
  • Prepared to stay in program at least (5) years

Truck Writers, Inc. acts as a Third Party Administrator (TPA) for Transportation Alternative Risk Program (TARP) and Midwest Safety Group (MSG). TARP is a rent-a-captive, while MSG is a Minnesota workers’ compensation self-insurance group. Both programs were designed to assist trucking companies with increasing insurance costs.

To learn more about our insurance programs or our other commercial trucking insurance offerings, contact us today!

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