Workers Compensation
what asset managers need to know
Did you know that Workers Compensation is often purchased from a payroll provider or Professional Employer Organization (PEO) as part of a bundled package? And, the cost can be hard to track down.
Click to get the answers to some of the questions we get asked the most:
It matters where Workers Compensation comes from
Marketability. Asset Manager’s workers compensation class codes are highly marketable and often a top target for insurance carriers each year. Ability to market this insurance freely is key.
Cost. Workers compensation is priced per $100 of payroll and does not have a cap. In an industry that often has large payroll, even a small change in price per $100 can have an outsized premium savings.
Lack of Transparency. The renewal terms and cost of the policy may be blended with additional services making it hard for Asset Managers to monitor and control.
Missed Coverage. Often, we find gaps in coverage as it relates to use of third-party contractors and employees who are injured outside of the country.
Risk Control. All Asset Manager’s workers compensation have a “modification” that can materially increase the price of a policy. This must be protected to maintain low rates.
#1 / We often find that a review and marketing of a Workers Compensation policy by our team can lead to a premium reduction, even if the Asset Manager does not choose to move forward with unbundling from a PEO or payroll provider.
#2 / Payroll providers and PEO’s point to the administrative burden to disincentive their client’s from removing the Workers Compensation, BUT most standard carriers have a robust reporting system with auto pay option that make it easy for our clients to navigate.
We've saved clients a lot of money
We’ve helped Asset Managers save a lot by reviewing their current Workers Compensation and recommending separations from their PEO or payroll providers. The proof that there may be a better value out there for you too is in the numbers:
28% savings
A $30 billion private equity manager saved $40,000 in an estimated annual premium (ability to increase to $63,000 with full dividend).
18.5% savings
A $500 million hedge fund manager saved 18.5% in their premium after being separated from a payroll provider.
35% savings
An $8 billion hedge fund manager saved 35% in their premium after being separated from a payroll provider.
28% Savings
A $1.5 billion private equity manager saved 28% in their premium after being separated from PEO.
41% Savings
A $2 billion private equity manager saved 41% in their premium after being separated from a PEO.
A $1.5 billion private equity manager saved 28% in their premium after being separated from PEO.