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Retailers Insurance Company earns Unsurpassed rating

Retailers Insurance Company - Monday, June 04, 2018

Retailers Insurance Company earns Unsurpassed rating for best practices

Retailers Insurance Company has upped its Financial Stability Rating (FSR) from “A Prime Exceptional” to “A Prime Unsurpassed” by Demotech, Inc.

Retailers Insurance Company (RIC) reached this level due to their “unsurpassed financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves and realistic pricing,” according to Demotech, Inc.

Ninety-nine percent of insurers countrywide with the rating of Unsurpassed expect to have a positive surplus as of 18 months from the initial rating date, regardless of the severity of a general economic downtown.

Retailers Insurance Company provides cost-saving workers’ compensation insurance, credit, and dental insurance to a wide array of businesses, non-retail and retail, through a statewide network of insurance agencies.

Headquartered in Lansing, the company was launched by the Michigan Retailers Association in 1981 to help members navigate the complex world of workers’ comp. Policyholders are members of MRA, the largest state retail association in the nation and a trusted resource for more than 5,000 businesses.

RIC’s policyholders range from agriculture to manufacturing to retail and beyond. The company is known for offering unusual features:

  • $2 million employers’ liability limit, rather than the standard $500,000;
  • Automatic $100,000 in EFT Guard protection against online banking theft and cyber extortion; and
  • Automatic terrorism coverage.

Go to for more information or to find an agent.

Columbus, Ohio-based Demotech, Inc., is a financial analysis firm that specializes in evaluating the financial stability of regional/specialty insurers.

RIC held the Exceptional rating since 2006.

Lowering My “MOD”

Retailers Insurance Company - Saturday, January 21, 2012

Do you know what your “mod” is and why it’s important for determining how much you pay for workers’ compensation insurance?

You should, because that knowledge can help you reduce your cost of work comp — or at least understand why your cost went up.

In work comp, each insured business gets its own experience modification rating, more commonly known as the “mod.” This rating, usually expressed in a number either less than, equal to or greater than 1, provides either a discount from or an addition to the rate an average business of that class of business would get.

The standard insurance rate for your type of business is multiplied by the mod to determine your actual premium. So you can see that the lower your mod, the lower your insurance premium. When it comes to your mod, lower is always better.

The complex formula for determining your mod is set by the Michigan Rating and Inspection Bureau. It takes into account various rating factors, especially your claims experience, payroll and premium. Generally speaking, the more payroll you have and the fewer claims, the lower your mod.

The most important thing to remember is that your mod is based on the cost and safety record of your business and is, therefore, under the control of your business.

One of the most important things you can do to reduce your mod from year to year is to improve workplace safety and reduce claims. The severity and frequency of your claims directly impact whether your mod rises or falls from year to year.

Some analysts believe that a history of small, recurring claims can have a greater negative impact on your mod than one large claim. Why? Because it suggests that a continuing problem exists at your business. Which is why you need to pay special attention to repeat accidents.

Taking every reasonable step to improve the safety environment of your workplace can pay off in a lower mod and the resulting lower work comp premium.

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Retailers Insurance Company | 603 South Washington Avenue | Lansing, MI 48933
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