An Alternative Approach to Workers Compensation

Have you ever wondered if a Captive is the right approach to address your Workers Compensation needs?  The marketplace is changing rapidly and there has never been a better time to make the move.

Despite favorable calendar year results, the reinsurance market for U.S. Workers Compensation, brought on by a one-two punch of depressed returns and increased loss severity, showed signs of hardening effective with January 1 renewals.  The longer tail exposure with this class of business makes higher investment returns extremely critical. 

As of December 2020, seventeen states and Puerto Rico have taken action to extend workers compensation coverage to include COVID-19 as a work related illness with nine states enacting legislation creating a presumption of coverage for various classes of worker.  This presumption places the burden on the employer and insurer to prove that the infection was not work-related.

This collision of factors brings an end to a period of sustained year-over-year rate reductions and the Captive Insurance marketplace has taken notice.  At the recent Vermont Captive Insurance Association (VCIA) Legislative Day, it was reported that in 2020, Vermont licensed 38 new captive insurance companies, an increase from the typical year with the approval of 20 to 25 new captives.  And 2021 will likely lead to even greater captive formation.

When you join a Captive, you are recognizing that you want to have more control over one of the few expenses that have been outside your control.  As a policyholder, you become an owner and director of your own insurance company.  It alleviates renewal anxiety and the endless hard and soft market cycles.  It also creates a profit center by returning profits that would normally go to the insurance carrier to you. 

The Peace Church Workers Safety Program (PCWSP) was formed in 2015 with a goal to provide mutual aid for all members while simultaneously delivering the benefits of a traditional captive.  This is achieved by changing the culture to one of wide-ranging safety awareness driven by comprehensive data models, by creating on-going service plans and through dedicated Claim Management Advocates that act as an extension of your local team.  Risk control advisors develop and implement safety programs and trainings designed to meet the specific needs of the healthcare industries.  A suite of on-line resources are available to aid with safety training, safe patient handling and detailed post-accident investigation. 

If you would like to learn more about the Peace Church Workers Safety Program and the benefits it could bring to your community, please reach out to Eric Himes,, or Phil Leaman,, to schedule a review.  Step-off the marketplace roller coaster and learn about the privileges that come from ownership.