FAQ
How Do I Know if I would Qualify To Be a Member of Sigma-One?
To qualify for Membership in the Trust you must be a New Hampshire company that is engaged in some type of manufacturing operation. The determination of what is manufacturing is not always crystal clear and there are some interpretations.
We have Members that make printed circuit boards and concrete blocks. Clearly they manufacture a product. We also have food processors that "make" portion controlled food products and since they don't "fit" into the other Self-Insured Groups in the State, they fit in ours. We also have Members that make candles, "make" bark mulch, sell furniture but "make" or assemble a large percentage of it.
If you have any questions about whether your business would qualify for Membership, call us.
How Do I Apply For Membership?
All potential Members of Sigma-One go through an approval process that involves the following:
- a meeting with the company to fully explain self-insurance and a walkthrough of the facility,
- a review of financial statements for State of New Hampshire Department of Labor approval,
- collection of a New Hampshire Department of Labor Safety Summary Form,
- 5 years of Experience MOD Worksheets,
- 3 to 5 years of insurance company loss runs,
- an application specific to the Trust
Each applicant is then reviewed and approved by a three Member Underwriting Committee. The Members of this committee are also Members of the Board of Trustees.
There is a final approval by the Department of Labor as well as the Excess Insurance Company that insures the Trust.
Although this sounds like a lot, we have done it over 150 times and have it down to a science. In most cases, if we have all of the paperwork we need, it is possible to get a qualified Member approved in a matter of three to five business days. Needless to say, we would prefer longer and one to two weeks is a much better timeframe.
What are the benefits of Membership?
The benefits are fully detailed elsewhere on the website but succinctly control over the claims process as you are buying insurance from yourself, stability of rates and control over the workers' compensation claims process.
Can Any Company Join Sigma-One?
No. Self-insurance is not for every company. There is a perception that this type of insurance is new and/or risky. Self-insurance groups for workers' compensation have been around in New Hampshire since the late 1970's. Approximately one-third of all businesses in New Hampshire participate in some form of self-insurance. The risk is greatly minimized by running a group well, having appropriate financial controls and excess insurance in place, selecting Members that will contribute to the success of the group, participating in proactive safety programs and aggressive claims management.
The bottom line is that if a company believes that workers' compensation is a controllable cost and they are willing to work with our staff, they will likely be a successful Member of Sigma-One.
Will I Get Money Back?
Some Trusts are structured to intentionally generate a surplus so they can give money back. Sigma-One strives to keep rates stable and more predictable first and give extra or surplus premium back second. It is likely that a surplus will exist for most years that may be equal to a few percent of your premium or as much as 10% to 20% of your premium. You will only get money back if you helped create the surplus premium.
Bottom line, you should consider Sigma-One because of the stable premiums and great service not because of the potential to get money back.
Who Handles My Claims?
Our claims staff is based in our office in Concord, New Hampshire, not an 800 phone call and voice mail away. We strive to keep our claims load manageable so our Adjusters can adequately manage rather than process claims.
I Am Interested In Membership. Who Do I Contact?
For questions or more information on joining Sigma-One, please visit our contact page.
Who Is Sigma-One?
Sigma-One is one of (currently) nine self-insurance groups for workers' compensation in the State of New Hampshire. It is a group of more than 180 manufacturing companies with over $10 million of premium in New Hampshire that have joined together to create an effective model for controlling workers' compensation costs.
Sigma-One is a Trust run by a nine Member Board of Trustees made up from the Membership of the Trust. The Trust is Administered or Managed by Comp-Sigma Ltd. of Concord, New Hampshire.
Who is Comp-Sigma Ltd?
Comp-Sigma Ltd. (CSL) is a licensed Third Party Administrator that manages the day-to-day operations of the Sigma-One Trust. CSL also manages one of the other nine self-insurance Trusts that focuses on the lumber and wood products industry. CSL was formed by Scott Lawson in 1994 as an off-shoot of The Scott Lawson Group, Ltd, a safety and health consulting company that has been in business since 1978.
The safety and health background that Scott has as a Certified Industrial Hygienist brings a very different attitude to workers' compensation insurance as CSL strives to reduce the number and severity of accidents through a proactive approach to worker safety and health combined with aggressive claims management to get an injured worker the right treatment at the right time from the right provider so we can return an injured worker to full work capacity as soon as possible.
