Protecting the Industry
Self-Insured Workers' Compensation Fund
The ABC Fund is a member owned workers’ compensation program endorsed by the Associated Builders and Contractors of Michigan and its three chapters: ABC Greater Michigan Chapter, ABC Southeastern Michigan Chapter, and ABC Western Michigan Chapter. The Fund is also endorsed by the Home Builders Association of Michigan. The sole purpose is to keep members’ workers’ compensation costs low, reliable, and predictable.
Why insure with the ABC Fund?
Competitive Rate
Due to better risk selection, only those with a proven record of low losses qualify.
Better Claims Service
Settlement authority rests with the Fund. The decision making board is comprised of members, just like you!
Safety & Loss Control Services
Resources and services specifically designed for the construction industry.
Fund Structure
- Fund members pay premiums into the Fund. Premium is calculated based on the payroll and loss experience of the member.
- The Fund invests the premium until it’s needed to pay claims.
- Approximately 25% of premiums goes toward operating expenses and the purchase of excess insurance.
- The remainder of collected premium dedicated to member claims.
- Premium not used to pay Fund expenses or claims is returned back to the members, along with any investment income earned.
How the Fund Works
The ABC Fund, administered by RPS Regency, is owned by its members and operates similar to an insurance company – providing the same employer protection and paying claims to employees injured on the job. The Fund saves members money by operating with reduced overhead, aggressively managing its claims and through industry-specific loss control efforts. The money that is not used to pay for claims, and any investment income, is returned back to the members over time.
As the Fund ages, members receive profit returns from a number of Fund years. Also, the ABC Fund is protected from large losses by the purchase of excess loss insurance, further enhancing stability and profitability. Over the Fund’s history, members have received profit returns equal to 45 percent of the premiums paid.
Eligibility
Participants of the Fund must be a member of the ABC of Michigan or HBA of Michigan. Non-members may receive a proposal from the Fund. Upon joining the Fund, the business would then be required to join an ABC Chapter or a HBA Chapter. To be eligible, a business must serve in the construction industry as a contractor, subcontractor, or a supplier and must meet underwriting review based on loss history.
The Fund covers a wide variety of classifications; however, certain exposures such as roofers, steel erectors, demolition contractors are not eligible.
Interested in learning more?
