BECOME A MEMBER
Thank you for your interest in becoming a member of THE FUND. We market our workers’ compensation program through the independent insurance agency system here in Alabama and throughout the country. Please ask your independent insurance agent to submit an application for underwriting on your behalf. Membership in THE FUND requires joining our sponsoring association, the Business Council of Alabama.
THE FUND provides workers’ compensation coverage for participating members. Benefits are those included in the Alabama Workers’ Compensation Law. Excess and Employers Liability coverage is provided by Midwest Employers Casualty Company. In addition, through a special arrangement with Sentry Insurance Company, coverage for approved operations of member companies is provided for cross border exposures.
THE FUND is dedicated to providing a superior workers’ compensation program. Together, with our service provider, Employers Claim Management, Inc., we are able to offer our membership the following services:
UNDERSTANDING GROUP SELF-INSURANCE
In 1965 the Alabama Legislature passed Code 25-5-9, which allowed the pooling of liabilities of two or more employers; generally of common interest either by industry or association relationship. Unlike the traditional market, (SIG’s) are not in the business of maximizing profits; we are in the business of minimizing costs to our members. Excess surplus (profit) generated in a particular year is eventually returned to the SIG member. The Fund returns this excess in contribution credits, subject to eligibility requirements. The contributions (premiums) charged by SIG’s are generally less than the rates charged by traditional insurers, leaving more money for the member to invest in their core business. The “equity position” the member enjoys in the SIG creates a stakeholder mentality that aligns the member’s interests with those of the SIG and the SIG’s interests with those of the member.
In the regulation of SIG’s, the Alabama Department of Labor requires a Joint and Several Liability Clause be included in all SIG Participation Agreements. Joint and Several Liability means that each SIG member is jointly and severally liable for any deficit that occurred during the years they were a participant in the group.
For more information, download a free copy of Understanding Group Self-Insured Workers’ Compensation Funds here.