Business Council members can realize substantial savings on their workers' compensation costs by buying coverage through The Business Council's workers' compensation trust for manufacturers.

In 1998, trust participants saved an average of 28 percent on workers' comp rates compared to traditional coverage, said Bob Crandall, director of member services for The Council.

"There are many more manufacturers who are Business Council members that can and should get the same benefit and the same savings," Crandall said.

All New York State employers must buy workers' compensation coverage for their employees. Both commercial insurers and the state Insurance Fund offer fully insured plans, under which annual rates do not change regardless of losses by the participant or the fund.

In contrast, self-funded plans-such as The Business Council's trust-offer significantly lower initial annual rates, with the potential of future dividends.

By securing a comprehensive reinsurance policy, The Business Council's trust has significantly lessened the risk of additional assessments due to unexpected or catastrophic losses, Crandall said.

The trust's expenses are low because the fund is administered by First Cardinal Corporation, which administers nine different industry-specific workers' comp trusts and is the largest workers' compensation trust administrator in the state, Crandall noted.

"Because First Cardinal administers so many trusts, costs of both administration and reinsurance are kept low," Crandall said. "These savings are passed on to participants."

With more than 3,000 participants in its nine trusts, First Cardinal has never charged any additional assessments to cover expenses or losses in any year, Crandall noted.

The trust's loss experience since inception has been very favorable, which has increased the potential for future dividends or reduced rates.

The Business Council won approval to create its workers' comp trust for manufacturers in 1996 from the state Workers' Compensation Board.

In the last three months, employer participation in the trust has been increasing significantly. The amount of premiums received in that period has doubled through the addition of 19 new employer participants, Crandall said.

Contact Bob Crandall at 518/465-1571.