Florida-based Gevity has renewed its agreement with member companies of American International Group Inc. (AIG) to provide workers’ compensation coverage for Gevity’s internal and client employees in 2005.
The structure of the 2005 program is similar to the 2004 program, with enhancements that include a decrease in required premium payments to cover claims, as well as a reduction in the plan’s fixed cost relative to the total underlying manual premium. Similar to the 2004 program, the 2005 program does not require additional buffer collateral.
The company also announced that through an enhanced program with Munich American Risk Partners, Gevity has elected to reduce its deductible per occurrence to $750,000 for the 2005 program compared with $1 million for the 2004 program, in order to effect a further major reduction in its potential exposure to insurance-related risks.
Erik Vonk, Gevity’s chairman and CEO, commented, “The favorable terms of our 2005 workers’ compensation insurance program reflect
the strength of our risk management practices and our improved risk metrics. The 2005 program allows us to utilize our capital more efficiently. In addition, the reduced deductible per occurrence further shifts insurance- related risks away from us in line with our goal of insurance neutrality.”
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