Who Can Participate in the NFIB/IWIF Group Safety Plan
To be eligible for the NFIB/IWIF Group Safety Plan:
- You must be an NFIB member
- Your company can be in any business classification EXCEPT:
- Temporary or leased employment agency
- Professional employment organization
- Construction operations with 25 or more employees
- Admiralty exposures
- Aircraft operations
- Coal mining
- Professional sports teams
- Offshore drilling
- Trucking operations—local and long-haul
- Contractors working at heights over three stories
- Any work related to asbestos handling and removal
- Mold/toxic mold remediation
- If the account includes class code 56060 (Executive supervisors), the amount of payroll in the 56060 class code cannot exceed 30 percent of the account’s total payroll
- At the time IWIF evaluates your company for participation in the NFIB/IWIF Group Safety Plan, your company must be able to meet the underwriting criteria in effect for thee group. These criteria include (but are not limited to) limits on the value of your experience modification factor, limits on your company’s loss ratio or frequency of claims, the effectiveness or comprehensiveness of your company’s safety programs and other factors as determined at the discretion of IWIF.
- Companies may become part of the NFIB/IWIF Group Safety Plan on their IWIF renewal date or on the inception date of their policy, if they are not currently insured with IWIF.
- To continue to enjoy the benefits of the NFIB/IWIF Group Safety Plan, participating businesses must be willing to assist the group in earning higher dividends, by adopting practices outlined in the NFIB “Safety is Smart Business” program (below).
How dividends for the NFIB/IWIF Group Safety Plan are calculated and distributed
Calculation and timing of distribution of the group dividend:
- To be eligible for the group dividend, the group must meet the claims performance requirements set forth by IWIF for the coverage period in question. The amount of the dividend will be based on a formula developed by IWIF.
- The NFIB/IWIF Group Safety Plan year begins and ends Feb. 15. Performance for the previous one year period ending Feb. 15 is evaluated July 15.
Dividends, if declared, are distributed follows: - 66.7 percent of the previous year’s dividend is distributed six months after the program year ends.
- 33.3 percent of the previous year’s dividend is distributed 18 months after the program year ends.
How individual companies qualify to pro-rata share the group dividend:
- Individual companies must have a loss ratio (incurred losses including loss reserves/premium earned during the period) of less than 50%.
- Companies must have been an active insured during some part or all of the NFIB/IWIF Group Safety Plan year and must have an eligible policy in effect at the end of the NFIB/IWIF Group Safety Plan year in order to receive a pro-rated share of the dividend.
- Individual companies must be active, governing members of NFIB at the time they join the NFIB/IWIF Group Safety Plan and at the time dividends are to be paid.
- Nonmembers or lapsed member WILL NOT receive dividend checks even if dividends are declared and approved.
- Individual companies must be in compliance with the claims and safety NFIB/IWIF Group Safety Plan criteria set forth in the NFIB/IWIF Group Safety Plan participation agreement.
