Employers Direct Insurance Company (EDIC) has contracted with the Home Builders Association of Northern California (HBANC) to provide workers’ compensation insurance coverage to selected members. EDIC works directly with their customers and their insurance programs are not available through agents or brokers.
The association represents the builders and subcontractors who build most of the new homes in the area, as well as suppliers and associated professional firms.
The Employers Direct endorsed group program adds to HBANC’s existing program by offering workers’ compensation insurance to members paying $200,000 or more in annual premium, according to Guy Bjerke, Chief Operating Officer of the association region representing 12 counties around San Francisco Bay.
Employers Direct is the first new workers’ compensation insurance carrier to be licensed by the California Department of Insurance in more than a decade. With unencumbered capital and a dedication to active management of claims and losses, the company has been able to offer significant rate decreases for 2004 far exceeding the state average.
“The Home Builders Association of Northern California is part of the National Association of Home Builders which has over 220,000 members nationwide,” said David Bordwell, Employers Direct Vice President of Sales. “Our endorsement with this caliber association demonstrates association demonstrates our aggressive role as specialists in the California workers’ comp industry.”
Employers Direct contracted with the region of the Homebuilders Association representing the counties of Marin, Sonoma, Napa, Solano, Contra Costa, Alameda, San Francisco, San Mateo, Santa Clara, Santa Cruz, San Benito and Monterey. Approximately 1,000 members build 75 percent of the new homes in this region. The program is open exclusively to association members throughout this Northern California area.
Thus far in 2004, Employers Direct has cut its workers’ compensation insurance rates by 14.9 percent in its rate filings with the California Department of Insurance. This decrease is over four times the average reduction reported by the state insurance department.
According to Chief Financial Officer Ronald A. Groden, Employers Direct can cut rates more than the industry average because its aggressive claims department is better able to administer the new state regulations that went into effect in January 2004. Additionally, as a direct writer the company has been able to select employers who share its vision that aggressive claims, loss and fraud management will drive down costs.
Employers Direct entered the California workers’ compensation insurance market in late 2002 with an initial $55 million in capital and the support of a sophisticated investment group. The lead investors are Securitas Capital and Golden Gate Capital.
Employers Direct, www.edicwc.com, was founded by James E. Little, who is Chairman, President and CEO, and by Groden, who is Vice Chairman as well as Chief Financial Officer. From 1990 until 1998, Little served as President of Fremont Compensation Insurance Co., and Groden was formerly Chief Financial Officer of Fremont Comp.
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