Workplace safety rewarded
Linda Sappington
Laurence “Lanny” A. Hubbard, left, Montana State Fund president/CEO, presents a $33,010.78 dividend check to Greg Hertz, CEO of Moody’s Market Inc. Jan. 6 at Super 1 Foods. Also pictured are Bob Howell, produce manager; Gary Collinge, store manager; Rob Turner, PayneWest; and Nicole Miller, front end manager.
Linda Sappington
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POLSON — Montana State Fund, the largest workers’ compensation insurance carrier in Montana, declared a record $35 million dividend in November. The checks will be distributed to policyholders across Montana this month.
On Wednesday, Jan. 6, Montana State Fund President/CEO Laurence A. Hubbard presented Moody’s Market a dividend in the amount of $33,010.78.
The dividend returns a portion of premium back to those policyholders who have made a commitment to provide a safe workplace for their employees and in turn lower injury rates.
State law requires MSF to collect enough money to cover anticipated claims, based on work environment and accident history. Next to payroll, workers compensation is the highest expense on the books.
“Seven years ago, we were paying $400,000 a year in workers compensation,” said Greg Hertz, CEO of Moody’s Market Inc.
The business had an average of 30 accidents per year before working with the Montana State Fund through agent Rob Turner of PayneWest, according to Hertz. Super 1 Foods implemented a safety in the workplace plan. Now that payment has gone down to about $100,000, with an average of four injuries per year.
“It’s a matter of employee awareness,” Turner said, “and continually paying attention to safety.”
Under the direction of Kristin Hertz, Wellness and Safety Coordinator, Super 1 Foods offers safety incentives for their employees, and managers are tasked with keeping safe practices constantly on the employee’s minds. For instance, employees practice lifting properly to avoid back sprain, which is the most commonly reported injury, according to Hubbard.
MSF waits two years to make sure all claims have developed in the way anticipated. If more money is collected than needed to pay claims, a portion of the premium is returned to the business.
“If there’s no accidents, the costs go down,” Hubbard explained.
Historically, Montana’s worker compensation rates have been among the highest in the country, according to Hubbard. Returning a dividend promotes and rewards workplace safety.
Workman’s compensation works like this: if an employee is injured in the workplace, their medical indemnity and two-thirds of their base salary are paid and not taxed. The trade off is that the employer can’t be sued because the injured employee can’t seek litigation against their employer. As long as the no-fault premium is paid, the employer is covered.
Since 1999, MSF has returned more than $141M to policyholders via the dividend process.
