EquityComp®

Developed for companies with premiums of $150,000 — $2 million who seek flexible risk financing without complex captive arrangements, EquityComp is a sophisticated risk-financing program that allows customers to craft a solution that satisfies their particular appetite for risk. Unlike so-called alternative risk financing programs, with EquityComp there are no cumbersome retro or deductible policies, no complex captive arrangements: one bill, one company, shared profits.

Features

Flexible and Customized: EquityComp allows you to create a solution specific to your needs. Traditional rating models are cumbersome and restrictive, rendering them financially ineffective for the customer. With EquityComp, you get the flexibility of creating a solution that meets your appetite for risk and your particular financial circumstances.  

Integration Makes EquityComp Reliable and Easy to Use: Unlike the increasingly popular alternative risk financing solutions that gather a hodge-podge of services from a variety of vendors, EquityComp is a fully integrated solution. With EquityComp, you get one bill, one account manager, and online access to everything you need when you need it. The result is that an otherwise complex process is made easy and straightforward.

Share in the Profits: While traditional coverage programs are cumbersome and restrictive, EquityComp makes profit-sharing simple: control your claims and share in the underwriting profits.

Program Structure

The EquityComp program structure is a loss-sensitive plan set up similarly to an incurred loss retrospective plan. The plan has a set minimum and maximum the insured will pay. The final cost of the plan will ultimately be dictated by the insured’s loss experience. The product is designed so that each insured can control the cost of their own insurance through their loss experience.

• A guaranteed cost (fully insured) workers’ compensation policy will be issued in conjunction with this Plan, by an A rated carrier
• That policy does not contemplate this Plan. This Plan, and its associated risk, is accounted for in a captive insurance company, domiciled in the British Virgin Islands.

Characteristics of a target EquityComp account

• Standard Premium between $150,000 and $1,000,000
• Credit mod history
• Stable payroll history
• Good to excellent loss history
• Low number of indemnity claims
• Willing to buy a “Retro” and share in the risk
• Willing to join a non-assessable segmented cell within a captive

EquityComp Underwriting

• A complete submission includes: ACORD application, 4 years currently valued loss runs (within 90 days of effective date), 4 years premium and payroll history.
• Optional items: Financial statement and any other pertinent risk management information (Supplemental WC app., Experience Modification worksheet, Safety Procedures, etc.)

Prohibited classes: Aircraft flight operations, asbestos removal, construction contractors, carnivals, gas or oil drilling exposures, nuclear, railroad, subaqueous work, underground mining, USL&H

Acceptable classes: Retail, wholesale, manufacturing, service, hospitality, and transportation.

Direct Bil: Flexible deposits with Monthly Payroll Reporting via a client-secure website

All states acceptable except: Florida and Texas (incidental only)

Equity Comp® - Equity Comp is a registered trademark of Applied Underwriters