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FEATURE

Workers Compensation Fund Boasts Third Lowest Rates in the Nation; Will Pay Policy Holders $41M Dividend

While rates for workers? compensation insurance are rising in most states, Utah businesses enjoy the third lowest rates in the country, thanks to the Workers Compensation Fund (WCF). The organization has recognized an average 8.2 percent rate decrease and will be paying a $41 million dividend to its 30,000 policy holders this year. Since 1992 the WCF has returned $290 million in dividends.

?Only two states, Arizona and Indiana, have lower comparative costs,? says Peggy Larsen, senior vice president for WCF. ?We were sixth lowest and have since moved to third lowest.? The lower rates and dividend are largely due to Utah?s continued decline in the frequency and severity of accidents.

?From an economic development standpoint, Utah?s low workers compensation rates are a huge benefit of doing business here, as compared to states like California, Delaware, and New York, where businesses pay as much as three times our rates,? Larsen says. ?Higher workers? compensation rates are certainly one reason businesses are choosing to leave other states.? WCF actively participates in EDCUtah recruitment efforts by providing workers? compensation rate comparisons and other essential information for businesses looking to expand or locate in Utah.

Safe Workforce a Factor in Lower Rates

Larsen says Utah has a generally safe workforce, which contributes to lower workers compensation costs. Other beneficial factors in the Beehive State?s low rates include greater awareness, training, caring by employees and less fraud. Utah has a generally honest workforce and so fraud is not a significant problem, but WCF?s aggressive fraud investigation team helps keep fraud in check.

Another reason for WCF?s rate reduction is a huge drop in worker fatalities. Utah generally experiences about 25 worker fatalities per year, according to Larsen, but this year there have been 11.

?The decline in fatalities, low fraud, and reduced claims just shows there is more of an awareness in the workplace,? according to Larsen. WCF provides safety training in house and at the workplace for policyholders, puts together training plans for companies that desire them, and has a staff of 24 people dedicated to safety resources and training. WCF has specific safety programs for associations and offers safety credits to companies that attend safety seminars and implement safety practices.

WCF's safety programs rank among the most professional in the nation. Larsen says accidents involving WCF?s customers' employees have decreased more than 30 percent. WCF?s safety department presents safety seminars covering both basic safety and industry-specific safety to customers throughout the state. Some of the safety seminars are now offered via Web casts and free safety topic guides are available at www.wcfgroup.com. WCF has also developed PSA campaigns aimed at improving employees? approach to safety; hosts safety fairs; and more.

WCF Celebrates 90th Anniversary

This past July the WCF celebrated its 90th anniversary. Established in 1917, the company is a quasi-public corporation under the control of a board of directors. Lane Summerhays was named president and CEO in 1992. Under his leadership, the WCF has set the standard for workers? compensation insurance, helping make workplace safety a priority among Utah companies and keeping premiums among the lowest in the nation.

In return for being formally designated as Utah?s ?carrier of last resort,? the WCF receives a federal tax exemption and nonprofit standing. Like other insurance companies, it pays state income taxes and all other taxes, and the state of Utah has no claim on its assets and no responsibility for its liabilities.

The WCF offers its customers a variety of services including safety and loss control, claims administration, medical case management, vocational rehabilitation, and fraud investigations. WCF is rated A- (Excellent) by the A.M. Best Company.
 

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CALENDAR

Nov. 30 -- Utah Technology Council's 9th Annual Hall of Fame Celebration. Keynote speaker: Intel President and CEO Paul S. Otellini. Black tie event. Location: Salt Lake City Grand America Hotel. 6 p.m. executive networking, 7 p.m. dinner and program. For more information call (801) 568-3500 or click here to register.

Dec. 19:  EDCUtah Holiday Open House

Jan. 9:  "What's Up Down South?" Economic Summit at the Dixie Center in St. George. Contact Information:
Contact: Scott Hirschi, c/o Dixie College, 225 South 700 East
St. George, UT 84770  (435) 652-7750
www.whatsupdownsouth.com

 

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The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development. If you prefer not to receive this newsletter, please use the link below. Subscribe or Unsubscribe Your comments and suggestions regarding this newsletter are always welcome. Click here: Comments

IN THE NEWS

Economic Development Headlines from the Past Week

A class job: Salt Lake's new Walker Center just like old ? except better

- When it was originally built, the Walker Center had just one bathroom on each floor? all men's rooms, of course, as usually only men worked outside the home in 1911. Fortunately for tenants in the newly renovated Walker Center, the building's new owners strayed from their commitment to staying completely true to the historic aspect of the Walker Center and the multimillion-dollar project includes both modern men's and women's facilities, along with state-of-the-art HVAC and electrical systems. (Deseret Morning News)

Walker Center returns to its roots; Far West Bank opens today in the historic building on Main Street

- After an absence of nearly three decades, banking is returning to the historic Walker Center in downtown Salt Lake City. (Salt Lake Tribune)

Ground broken for $30 mil development in Pleasant Grove

- Tuscan Gardens, a $30 million, six-building mixed use development in Pleasant Grove will be one of the city's largest commercial developments and will consist of medical, retail and office uses. (SL Enterprise)

Park City business center being redeveloped into 100,00 sq. foot project

- The Summit Center commercial business park in Park City is undergoing a complete redevelopment that, when finished, will have nearly 100,000 square feet of new retail, office and commercial space on 12 acres. (SL Enterprise)

Mrs. Cavanaugh's Candies regrouping after failed sale

- Mrs. Cavanaugh's Candies, a North Salt Lake-based manufacturer of chocolates is regrouping after a pending sale of the business fell through. (SL Enterprise)

Forbes revises list, puts SLC at No. 1 on 'Best Cities for Jobs' list

- Salt Lake City has replaced Raleigh, N.C. for the top spot on Forbes.com's newly revised Best Cities For Jobs list. (SL Enterprise)

Provo's East Bay to get $80M retail, office project

- South Provo is about to undergo major economic revitalization with The Boyer Co.'s Southgate Center, a new 59-acre mixed-use project anchored by Target Corp. (Daily Herald) (SL Tribune) (Morning News)

Firms Get Millions to Come to BDO

- Two national food companies have agreed to accept nearly $3 million in financial incentives from the state to establish operations at Business Depot Ogden. (Standard Examiner)

S. Utah touts ritzy retreats

- Swanky villas up the road from a watery playground. Tony town homes at a cozy ski resort. Cushy condos close to a celebrated theater. A ritzy RV retreat on the shores of a glittery lake. We're not talking about Tahoe or Telluride, the Poconos or the Finger Lakes. Instead, try Lake Powell, Beaver, Cedar City and Garfield County. (SL Tribune)

Cities work to draw in retailers

- Towns need more homes to attract businesses and more businesses to support new homes and necessary city services, and this proves to be a difficult cycle to break. Growth throughout the southern parts of Utah County -- now the fastest growing county in the state -- is causing cities to take a look at the ways they attract and keep businesses in town.  (Daily Herald)

Goldman offered $20M to hire more SLC workers

- Utah has offered an incentive worth as much as $20 million to encourage global financial services firm Goldman Sachs to hire 375 more employees in Salt Lake City at an average wage of more than $75,000 annually. (SL Tribune) (Morning News) (Utah Business Magazine)

Mixed-use development to rise soon in Clearfield

- When you talk about big buildings in Davis County, you can't find one that is taller than 120 feet. (Morning News)

Small-business boost?

- A draft bill that one legislator said will "help small business in a big way" was endorsed Wednesday by a legislative committee. (Morning News)

Tai Pan Trading consolidates HQ and distribution facilities

- Tai Pan Trading International has moved its headquarters from Sandy to Salt Lake City and has consolidated its three warehouses into one warehouse/distribution center.  (SL Enterprise)

Upscale canine 'spa and lodge' to open in Park City next month

- Doginhaus, an upscale spa and lodge for canines, is preparing to open an 11,000 square foot facility in the Summit Center in Park City. (SL Enterprise)

California home decor firm opens showroom in Salt Lake City

- Hillsdale Home Fine Decor Warehouse, a home decor store that imports and sells high quality, globally-produced urban chic merchandise at factory-to-consumer prices, has opened for business in Salt Lake City. (SL Enterprise)

Mall threat a familiar tale for Provo retailers

- Karl Thalman hasn't forgotten what happened to downtown Provo when University Mall opened in neighboring Orem. (SL Tribune)

Sandy says: Take a hike in our city

- Forget about Sandy's headline-grabbing quest for Real Salt Lake's soccer stadium. Don't even mention the gravel-pit referendum that rocked the suburb two years ago and ended in a narrow win for big-box stores. When you hear "Sandy," think hiking in the Wasatch Mountains... (SL Tribune)

Utah is cashing in on sports

- Ted Cordingley is one beneficiary of Utah's increasing role as a host of sporting events. (SL Tribune)

Provo to mull $9M bond for Action Target

- Tonight Provo City Officials will consider issuing $9 million in tax-exempt bonds on behalf of Action Target, which is expanding its manufacturing plant to the 327-acre Mountain Vista Business Center. (Daily Herald)

Ogden River Plan Coming

- Californian businessman Gadi Leshem will unveil plans next month for cleaning up a polluted 2-mile downtown section of the Ogden River, as a precursor for a possible multi-million dollar residential and retail development. (Standard Examiner)

State recruitment drive working

- A pitch to get more people to come to Utah to work apparently is, well, working. (Morning News)

Watts Construction Begins Construction of Dixie Commons

- Watts Construction has begun construction of a large complex called Dixie Commons. The first phase totals 56,000 square feet with eight buildings for various uses such as retail, office, restaurant and bank. (Utah Business Magazine)