March 11, 2014 Leave a comment
I’ve been working closely with insurance agents for 16 years. I get a lot of satisfaction from telling them about products and services that benefit their clients. I get even more satisfaction when I tell agents about products and services that benefit their clients and them. Safety groups are a good example.
A safety group is a group of employers in a similar industry who purchase their workers’ compensation coverage together. Think of it as strength in numbers.
Each group member gets a premium discount based on the group’s overall premium, regardless of their individual premium size. Safety groups are a great way for small employers to compete on a level playing field with large employers that have more money and resources.
Because safety group members operate in the same industry, their employees face similar on-the-job hazards. Insurance carriers can design custom safety services that address those unique hazards. By reducing workplace accidents, employers can further reduce their workers’ compensation costs. They may also have the potential to earn dividends from the carrier.
Safety groups are a good business proposition for agents, too. The premium discount that comes with joining a group is attractive to any business looking to cut operating costs. Once the client has experienced the custom workplace safety services and earned a dividend or two, they are more likely to stay in the group and, in turn, remain loyal to the agent.
In marketing, we spend a lot of time talking about differentiators. Safety groups are an opportunity for agents to set themselves apart from the competition. They also help small employers level the playing field with larger employers. Simply put, there’s safety and savings in numbers.
About the author
Jack Ogden is the safety group manager at Texas Mutual Insurance Company. He is a certified insurance counselor with 16 years’ experience in workers’ compensation. Jack works closely with insurance agents to help them get the most value out of their partnership with Texas Mutual.