And How We Save You Money
With over $10 billion in covered payroll and 75% of all 4A's members in our Work Comp program, it is safe to say that we are the largest player in the advertising industry.
Our program, which was initiated over 35 years ago, is structured through a captive insurance company — the 4A's Insurance Company Ltd. This captive approach allows us to maximize the low claim levels of the advertising industry, achieve low administrative costs through our group buying power, provide income on investment of reserves, and pass along this advantage through a dividend program. In fact, while a dividend is not guaranteed, the plan has paid a dividend every year of its existence — averaging 42.3% of policy and 56% of premium over the last 10 years.
So how is the dividend amount determined?
The captive's Board of Directors, which is comprised of financial executives of the largest participating agencies, meet in July of each year to review the audited financial statements and declare the dividend.
To summarize, enrolling in our plan will allow your agency to manage a consistent premium from year to year, diminish its exposure to large claims, and provide the potential of a dividend paid year over year — all while knowing the plan is governed by a Board of Directors comprised of representatives of member agencies. Good stuff.