Jim Walter Homes’ Workers Comp Coverage Plan
Workers comp coverage for a home builder that covers all employees including subcontractors can be an expensive option. One of the best workers comp policies adjusted by me was the workers comp coverage by Jim Walter Homes.
Jim Walter Homes ruled the market for all-in-one home construction including financing. The company ceased operations in 2009. They built their first home in 1946.
The homebuilding company eliminated all concerns over:
- Multiple layers of subcontractors
- Proper certificates of insurance
- Expensive individual contractor policies
- Claims control including choice of medical providers
Jim Walter Homes had a multistate high retention large deductible policy. Every contract with the various subcontractors included a percentage of contract fee for Workers Comp coverage. (I will not disclose the percentage even though they no longer build homes.)
The main contractors and subcontractors concerned themselves with building homes. The contractors knew coverage was being provided by the subcontract itself.
The plan was genius. The master policy operated like a PEO (Professional Employment Organization) of sorts. All workers relied on one master policy. One carrier handled all the claims. Medical and overall claims cost control increased as the subcontractors became familiar with First Reports and initial medical treatment.
All states accepted the coverage structure. Having multijurisdictional claims generated no problems. Jim Walter Homes lost no money on the arrangement. A win-win-win situation was created for all the contractors and the company.
The timespan when I adjusted many of their claims spanned the early 1990’s. I am not sure if they kept the same type large deductible policy for all the contractors and subcontractors after that time.
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