SiX Workers’ Compensation Program

Simply stated, alternative asset managers frequently overpay for Workers’ Compensation insurance.

Workers’ Compensation insurance is a regulated and mandatory form of insurance; every business with more than 5 employees must buy workers’ compensation insurance. For Alternative Asset Managers, this insurance comes at a high price based solely on total annual compensation with little to no recognition of low loss experience. Historically, the industry class has operated with excellent loss ratios, however, due to their size, many companies have been unable to obtain any program options beyond guaranteed cost.

To address this market disconnect, Vanbridge created SiX Comp. Specifically designed for Alternative Asset Managers, Hedge Funds and Private Equity Companies, this program provides competitive rates at policy inception and a dividend of up to 45% of standard premium based upon the loss experience of all insured participants and paid out 6 months after policy expiration (the program is placed with an A XV rated insurance carrier). To date the program has handled over $42M in cumulative premium and over the last nine years, has returned approximately $9.5M of dividends to clients in the program. We are excited to continue to grow this niche program for the benefit of our clients and broker partners.

Program Highlights

Eligibility

Under the program, ALL companies would be eligible for up to a 45% dividend based on the aggregate annual loss history of all participants.

Claims Capped

To protect the dividend against shock losses, claims are capped at $250k per occurrence within the dividend calculation.

No Minimums

No minimum premiums or restrictions on company size.

Transition Program

New accounts can be transitioned to program renewal date, via short-term “stub” policies on a pro-rated basis in order to avoid short-rate cancellation penalties from other carriers.

A Rated

Insurance carrier is A XV rated by A.M. Best and is able to provide competitive pricing for additional lines (Package, Auto, Umbrella and Foreign)

Seamless Transition

Transition is seamless since Vanbridge allows clients to access its program through their current insurance broker. No broker change required.

On a standalone basis, the alternative assets management firm was ineligible to participate in any carriers’ workers’ comp dividend program due to premium thresholds. The insured was not given any premium consideration by the market despite excellent loss experience. This company’s risk and loss profile was an excellent match for Vanbridge’s SiX Workers’ Comp Program. SiX Comp reduced this insured’s deposit premium by 50%.