Pub. 18 2019-2020 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 17 new jersey auto retailer W W W . N J C A R . O R G problem of employee injury is having a sig- nificant impact in helping participating mem- bers reduce employee injury and participants are enjoying significant financial rewards. In addition to monitoring the loss ratio and mod factor, dealers should also track the soft and hard costs of risk associated with employee injury. How is your worker’s compensation program doing? Is it doing everything possible to prevent injury? If the dealership’s insurance cost increased by 50 percent, how would this effect profit margins? What impact does an increase in insurance costs have on annual cash flow and annual budgets? How much can the dealership reduce these costs? How much productivity is lost by employee injuries each year? Dealers that ask and answer these types of questions will quickly begin to see the value of ZIP. ZIP has also allowed the NJ CAR Work- er’s Compensation Program to become the most competitively priced program in the State. ZIP has consistently cut employ- ee injury on the Program in half over the last four years, and this is creating tremendous value for members. The Worker’s Compensation Program pro- vides credits of up to 25 percent, as well as special considerations not provided by any other program that can save members an additional 15-20 percent. The Program also offers an extremely generous dividend to participants, with a maximum potential dividend of 25 percent, increased from the previous maximum of 15 percent this year. Dividends are returned to the dealer by check and not as a credit applied to future premium. Combined, participating dealer- ships have saved more than $2.5 million in premium, resulting in increased profitabili- ty and improved safety for employees. ZIP is also available to ALL Coalition members, regardless of whether they are on the NJ CAR Workers Compensation Program or not. NJ CAR’s loss control department is dedicated to raising safety awareness. Care for employee well-being, an extremely attractive dividend program, and tremendous savings in annual premium provide the right kind of motivation to join NJ CAR’s Worker’s Compensation Program and engage in ZIP. Let us help you achieve greatness in your safety and loss control right now! Charles Russo is NJ CAR’s Risk Manager and Safety Specialist. He can be reached at 609.883.5056, x314 or via email at crusso@njcar.org . annually by keeping their mod below 1.00. Non-Participating dealers are not performing as well. In 2015 many of these dealers were right around a 1.00 mod (blue line) either up or down and, since that time, most have seen a significant increase in their mod (orange Line). In addition to monitoring the loss ratio and mod factor, dealers should also track the soft and hard costs of risk associated with employee injury. How is your workers’ compensation program doing? Is it doing everything possible to prevent injury? If the dealership’s insurance cost increased by 50 percent, howwould this effect profit margins? What impact does an increase in insurance costs have on annual cash flowand annual budgets? Howmuch can the dealership reduce these costs? How much productivity is lost by employee injuries each year? Dealers that ask and answer these types of questions will quickly begin to see the value of ZIP. ZIP has also allowed the NJ CAR worker’s compensation program to become the most competitively priced program in the state. ZIP has consistently cut employee injury on the programinhalf over the last four years, and this is creating tremendous value formembers. The workers’ compensation program provides credits of up to 25 percent, as well as special considerations not provided by any other program that can save members an additional 15-20 0.000 0.500 1.000 1.500 2.000 Entire Group- Achieved Reductions in their individual Mods PARTICIPATING DEALERS REDUCE MOD PRE-ZIP 2015 Mod Factor ZIP Reduces Mod Factor 0.000 0.500 1.000 1.500 2.000 NON-PARTICIPATING 2015 Mod Factor Current Mod Factor Historical loss data used to calculate the mod show how well ZIP participants have performed after April 2015 (orange line) versus before ZIP (blue line). A reduction in mod is the leading indicator of how well an individual business has performed and will perform. Dealerships save a tremendous amount of ney annually by keeping their mod below 1.00. Non-Participating dealers are not performing as well. In 2015 many of these dealers were right around a 1.00 mod (blue line) either up or down and, since that time, most hav s en a significant increase in their mod (orange Line). annually by keeping their mod below 1.00. Non-Participating dealers are not performing as well. In 2015 many of these dealers were right around a 1.00 mod (blue line) either up or down and, since that time, most have seen a significant increase in their mod (orange Line). In addition to monitoring the loss ratio a d od factor, dealers should lso track the soft and hard costs of risk associated with employee injury. How is your workers’ compensation program doing? Is it doing everything possible to prevent injury? If the dealership’s insurance cost increased by 50 percent, howwould this effect profit margins? What impact does a increase in insurance costs have on annual cash flowand annual budgets? Howmuch can the dealership reduce these costs? How uch productivity is lost by employee injuries each year? Dealers that ask and answer these types of questions will quickly begin to see the value of ZIP. ZIP has also allowed th NJ CAR worker’s compensation program to become the most competitively priced program in the state. ZIP has consistently cut employee injury on the programinhalf over the last four years, and this is creating tremendous value formembers. The workers’ compensation program provides credits of up to 25 percent, as well as special considerations not provided by any other program that can save members an additional 15-20 0.000 0.500 1.000 1.500 2.000 Entire Group- Achieved Reductions in their individual Mods PARTICIPATING DEALERS REDUCE MOD PRE-ZIP 2015 Mod Factor ZIP Reduces od Factor 0 0 5 0 1 5 2.000 NON-PARTICIPATING 2015 Mod Factor Current Mod Factor