In August, CareWorks Comp and OADA will begin mailing quotes to dealers for workers’ compensation coverage for the 2020 policy year.  Many dealers will be in the position of considering both Traditional Group and Retrospective Group programs and determining which program offers the better opportunity for their individual dealership or dealer group.  OADA consistently provides strong programs for dealers to consider for workers’ compensation coverage, providing both a traditional group rating and the best performing retrospective group rating program for automobile dealers in the state.

OADA gives every member who qualifies for both savings program the opportunity to choose which program works best for their dealership.  If you haven’t given OADA authority to provide you with a quote for traditional and retrospective savings programs, DO NOT WAIT.  Call Sara or Matt at OADA today, or visit HERE and complete the form electronically.  There’s no cost and no obligation.  You owe it to yourself to find out what you may be missing.

Here is a brief description of the differences between OADA’s two programs:

TRADITIONAL GROUP RATING

Traditional group rating has been available in Ohio since 1991. This program is tiered allowing dealers the opportunity to reduce their premiums up front from 20% to the BWC maximum of 53%.  There is no waiting for a refund: dealers take advantage of the savings immediately by paying a reduced amount upfront.  With OADA’s traditional group rating there is virtually no risk for the current policy year.    

RETROSPECTIVE GROUP RATING

Retrospective group rating has been available to employers in Ohio since 2009. Retrospective group rating differs from traditional group rating in that instead of projecting savings by the group’s past performance, it measures the actual performance of the group for the policy year.  Any claims that are incurred by an individual member of the group will count against all program participants as it relates to potential refunds for the group.  However, OADA and CareWorks Comp strive to create a strong group of policies to protect members risk performance and investment. This has resulted in the best performing group retrospective program for automobile dealers in the state. 

There are some considerations dealers should take into account with Retrospective group rating.  First, dealers will pay their full premium (not a reduced premium as is done with traditional group).  If the group performs as we anticipate the dealership will receive a refund over a three year period at 12 months, 24 months, and 36 months one year after the policy year ends.  While the chances are extremely remote, if the whole group were to perform catastrophically, dealers would be responsible for paying additional premium.  The key to Retrospective group rating is in the underwriting. 

Remember that our underwriting has produced outstanding results for many dealers and recent data from the Ohio BWC has identified OADA’s retrospective group rating program as out-performing other retrospective programs offered to members of the automotive industry.

This article was provided by the staff of the Ohio Automobile Dealers Association.