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The National Council on Compensation Insurance (NCCI) is making alterations to its experience modification factor for 2024. These changes are slated to go into effect on each state’s regular filing date on or after Nov. 1, 2023. This Work Comp Insights will provide an overview of the NCCI’s changes. Overview of Experience Modification Factor The NCCI governs the workers’ compensation system in 36 states. The rollout will begin with the District of Columbia and West Virginia and conclude with Rhode Island on Aug. 1, 2024. The formula itself will remain unaltered; however, there are adjustments in how certain foundational components of the formula are derived to more accurately account for cost variations among states. Two specific changes are being made: A transition from a nationwide primary/excess split point to a state-specific split point and implementation of state-specific split points. A revision of the calculation of the state accident limitations. These changes may appear minimal, as the fundamental experience modification factor formula and methodology remain unchanged; however, these changes have the potential to increase or decrease employer premiums. The changes are being made to better reflect each state’s average claim costs and align with other state-specific variables. In addition, the NCCI states the revisions will improve plan performance by providing: Enhanced precision and predictability in experience rating modifications Experience rating modifications that equitably account for primary and excess losses in states with diverse cost structures Improved performance of the experience rating plan, particularly in states with substantial variations in claim costs compared to the national average Experience rating modifications with reduced sensitivity to exceptionally large outlier claims while maintaining predictive accuracy Consistent calculation of each employer’s anticipated claim count, resulting in a fairer allocation of credibility to each employer’s loss history Reconfigured credibility parameters that enhance fairness among employers Streamlined calculations by eliminating unnecessary complexities State-specific Split Points The split point plays a crucial role in the workers’ compensation experience rating formula. It represents the specific dollar threshold at which each claim is divided into two distinct components: Primary— Comprising the expenses of each claim incurred below the split point Excess— Comprising the expenses of each claim incurred above the split point Primary costs are given full weight in the experience algorithm. Excess costs, on the other hand, receive only partial weight in the experience algorithm. For instance, if the split point stands at $15,000, a claim amounting to $50,000 would contribute $15,000 to the primary category and $35,000 to the excess category. In the computation of the experience rating modification, primary losses carry more weight than excess losses. Consequently, primary losses have a more substantial impact on the experience rating modification. The D-ratio represents the expected percentage of losses that fall below the split point. Currently, the split point is uniform across states where NCCI provides rate-setting services. However, the average D-ratio in a state depends on the split point and the average claim costs within that state. Consequently, a uniform split point results in a widely varying average D-ratio among states. The proposed approach seeks to standardize the average D-ratio across states at around 40% by introducing a state-specific split point. This adjustment allows the split point to mirror the average claim costs specific more accurately to each state. Consequently, experience rating modifications will provide a more equitable allocation of primary and excess losses across states with differing cost levels. For instance, instead of a uniform split point value of $18,500 for all states, the proposed plan would assign a higher split point value, like $25,000, to a state with above-average claim severity, while a state with below-average claim severity might have a split point value of $15,000. The utilization of state-specific split point values, reflective of individual state cost variations, aims to align the significance given to actual employer loss experiences in the calculation of experience rating modifications across states. This is expected to result in improved and more comparable plan performance in states where claim costs deviate significantly from the national average. Given the considerable disparities in average claim costs among NCCI states, the experience rating modification must mirror these cost variations, similar to how loss costs and rates differ by state. Tailoring the split point to account for these cost differences is a significant stride toward aligning performance across states, resulting in a more precise and predictive experience rating modification compared to uniformly applying a nationwide split point. To respond to fluctuations in claim costs and uphold consistency with other factors influencing experience rating, the split point value is expected to be modified in tandem with the annual loss cost and rate filings for each state. This adaptation will rely on an assessment of yearly shifts in severity between the average loss date during the initial implementation year and the effective year. These changes will affect each state differently. Some businesses will have higher experience modifications, and others will have lower ones. Methodology for State Accident Limitations The state-per-claim accident limitation (SAL) serves to mitigate the impact of significant claims on the experience rating modification, as exceedingly large outlier claims are typically not indicative of future loss patterns. By adopting a state-level approach that considers the 95th percentile of lost-time claims, the SAL is designed to address the most substantial 5% of such claims. The revised definition of the SAL results in lower caps across all states. This adjustment makes experience rating modifications less responsive to exceptionally large outlier claims while still maintaining their ability to predict future loss trends accurately. Who Is Affected? NCCI-governed states include Alaska, Alabama, Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maryland, Maine, Missouri, Mississippi, Montana, Nebraska, New Hampshire, New Mexico, Nevada, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont and West Virginia. Independent bureau states like North Carolina, Indiana, Michigan, Massachusetts, Minnesota and Wisconsin are presently in the process of evaluating the proposed changes by NCCI and will communicate their adoption decisions once they have made a decision. Other states like New York, Pennsylvania, Delaware, New Jersey and California, which operate with distinct experience rating plans, won’t be affected by these modifications. Organizational Impacts No significant statewide premium impact is expected from the proposed. The overall average adjustment to experience rating modifications in each state is not anticipated as a result of these proposed revisions. The impact on individual employer-level adjustments in experience rating modifications will differ and can be offset by changes in loss occurrences and regular updates to rating criteria. It is projected that experience rating modifications for the majority of employers will undergo changes of less than +/-5%. This means that for some individual employers, their premiums could increase. Conclusion In summary, the proposed alterations to the experience rating modification calculation aim to enhance the performance of the experience rating plan and promote greater consistency across states. These modifications will come into effect for experience rating modifications with rating effective dates on or after each state’s expected loss cost and rate filing effective date, which begins on or after Nov. 1, 2023

Written by Bridget McConahay, Talent Acquisition Supervisor Congratulations on your recent (or upcoming) graduation! As you prepare for your exciting new chapter, we know the job search process can feel incredibly overwhelming. But fear not! Here at Cottingham & Butler, we want to help you stand out from the crowd. We sat down with some of our recent new hires, all current college graduates to gather their top tips, specifically geared towards landing your dream role at Cottingham & Butler: Tip 1: Leverage Your Internship Experience Recent graduates emphasize the value of internship experience. Internships provide hands-on experience and develop practical skills. Don't just list your duties; highlight achievements using the STAR method (Situation, Task, Action, Result). If you haven't graduated yet, consider our internship program – it's a great way to gain valuable experience. Tip 2: Tailor Your Resume and Cover Letter One-size-fits-all resumes won't do. Carefully review the job description and highlight the key skills and experiences they seek. Tailor your resume and cover letter to showcase how your background aligns with those requirements. This demonstrates genuine interest and sets you apart. For deeper understanding of our company culture, values, and projects, visit our Careers page. This knowledge will help you craft a targeted application that expresses your enthusiasm for joining our team. Tip 3: Master Networking on LinkedIn Your social media presence matters. Create a complete LinkedIn profile highlighting your passion and growth mindset. Share relevant content, engage in discussions, and connect with company professionals to stay top-of-mind. Maintain a polished and professional online presence. Elevate your LinkedIn profile by sharing insightful content, engaging in relevant discussions, and making meaningful connections. Connect with Cottingham & Butler on LinkedIn to stay updated on opportunities and connect with our team. Tip 4: Practice Makes Perfect Interview preparation is crucial. Research common interview questions specific to your desired role. Additionally, practice answering behavioral questions that begin with "Tell me about a time when..." These questions assess your skills and problem-solving abilities based on past experiences. Tip 5: Follow Up with a Memorable Thank-You A thoughtful thank-you email after your interview is a golden opportunity to stand out. Reiterate your interest and qualifications, referencing a shared interest or conversation you had during the interview. This personalizes your follow-up and leaves a lasting impression. Make your thank-you note concise, professional, and send it within 24 hours to demonstrate promptness and enthusiasm. By following these valuable tips, you'll be well on your way to landing your dream job at Cottingham & Butler. We're always looking for talented individuals to join our team. Visit our Careers page to explore current openings and apply today!

In 2022, the most recent year for which complete data was reported, there were 5,373 fatal crashes involving large trucks in the United States.  As motor carriers and fleet owners, we need to find a methodology to determine how these crashes occurred and learn from this information to develop corrective actions that will prevent these from occurring in the future. We’ll focus on developing a thorough and systematic approach to find the causes and contributing factors and creating a plan going forward to eliminate those causes from our operation. Click here to download the presentation slides.

Ergonomics, or human engineering, is the practice of designing machines, tools, and work environments to optimize human performance and behavior. By tailoring tasks to fit the worker, ergonomics ensures a seamless interaction between individuals and their workstations, promoting productivity and well-being. We’ll cover ergonomic principles, common injuries and risk factors, basic assessment tools, and implementation plans. Don’t miss out on this opportunity to enhance your understanding of ergonomics and equip yourself with valuable tools to promote safety and efficiency in your workplace. Click here to download the presentation slides.

Captive insurance companies, which are established to finance the risk of a parent group or groups and sometimes these groups’ customers, can provide advantages in risk management, insurance savings, wealth transfer, and taxes. They are a form of alternative risk transfer used by major corporations, nonprofit organizations, and medium-sized businesses. How Does a Captive Work? The owners of a group of businesses may decide to retain some of their own risk and form their own insurance company, called a “captive insurer,” instead of purchasing insurance from a third-party carrier. This is an attractive option for companies who find a limited availability of certain types of insurance coverage in the commercial market or find that those coverages will be a significant expense. In some cases, the captive insurer may decide to insure the group’s customers as well. The primary jurisdiction in which the captive insurance company is organized is called a “domicile.” Benefits of Captives Captives can bring many benefits as alternatives to other risk financing plans. Properly structured, captives can bring the following advantages: Reduced cost of risk Cash flow benefits from captive Coverage not available from commercial insurers Direct access to the international market of reinsurers, which can be more flexible Increased bargaining power with commercial insurers (if the captive holds a percentage of insurance) Centralize retained losses spread throughout subsidiaries Cash flow advantages on income taxes—premiums paid to a captive insurer can be tax-deductible, depending on several factors: The transaction is a bona fide insurance transaction under a defensible business plan The captive’s owner is organized such that subsidiaries pay premiums to the captive The captive writes a substantial amount of unrelated business, e.g., employee benefit business Ownership is arranged such that insureds are not the same as shareholders. Is a Captive Right for You? Captives can be valuable strategic risk management tools, but they are not the best approach for every organization. For some risk profiles, they are not feasible, and could ultimately cost more than traditional insurance. If your business is considering setting up a captive insurer, you must first clearly establish the financial and business goals and objectives of the company through effective communication between senior management, including CFO, risk manager, and business unit heads. Together, consider the following aspects of your company: Background and financial goals Actuarial or data issues, including loss data or exposure information needed, insurance company expense loads Reinsurance marketplace potential Tax and regulatory issues Desired captive design Several parameters can assist you in determining whether a captive is a viable option: You must be financially stable and have a good loss history. Captive expenses should be below 20 percent of premium unless there is a compelling reason for a higher ratio. You must be able to demonstrate your ability to pay for claims and secure future losses. You must be able to dedicate considerable attention to the operation of the captive. Feasibility Study Having concluded that a captive may be a good fit, take the following steps to more carefully study the appropriateness of a captive insurer for your organization: Review relevant background information Discuss the financial implications of captive formation Generate projections of expected loss experience Estimate operational expenses associated with the captive to determine premium Determine appropriate capital levels or margin of risk to support the written exposure, considering local legislation Describe qualitative factors including location, ownership, support, or other issues Prepare financial statements with balance sheets and income statements for the captive over five years under different scenarios Compare the captive with the status quo on both financial and non-financial criteria Issues to Consider Consider the following issues when examining captive insurers: Align your investment policy to the assumptions used to set premiums. Consider whether to use the time value of money based on the captive’s assets—for example, letters of credit do not generate investment income, so premiums should not be set considering the time value of money. Consider state or domicile premium taxes, U.S. federal excise taxes, U.S. income tax and 953(d) election (for foreign insurance companies). Expert Assistance Having determined that a captive is right for your organization, seek professionals experienced in actuarial, accounting, tax, and legal issues to help you set it up. They can assist you with the following additional steps: Selecting the Domicile: Select an onshore (within 50 states) or offshore (outside the United States) domicile. Here you must consider the ease of regulation in the area and the quality and quantity of support services. A visit to the domicile may assist. Selecting Partners: Selecting the right risk-sharing partner is critical to the success of the captive. This is the entity responsible for claims, generally a U.S.-licensed and admitted insurance company. The partner could be your current, traditional insurer or you could have time to form a new relationship—the partner will likely have strong opinions on your plan, and may have restrictions or requirements on practices and procedures. Operating a Captive: The captive will be an operating insurance company. It must receive funds immediately and invest them prudently so they are available to pay claims. This can be a source of revenue for the captive, but can also cost the owner substantial sums if improperly managed. Assigning roles and responsibilities and conducting frequent analyses on the captive’s financial health is essential to ensure it is bringing the desired benefits to the organization. We are committed to helping you implement the best risk management solutions for your business. Contact us today for more information.

Where did you attend college, and what was your major/field of study? I completed my degree at St. Ambrose University and majored in Sales & Marketing! How did you first hear about Cottingham & Butler and the intern program? I first heard about Cottingham & Butler from a sales director I met before graduation. He told me that I absolutely had to check out the company and encouraged me to look into the internship program. Describe your experience in the Cottingham & Butler internship program. What did you learn during the program that you still use today in your full-time position? The internship at Cottingham & Butler was my first real corporate job. I grew up on a farm, so I hadn’t been exposed to much as it relates to corporate life or what that meant. I was able to learn from experts in their respective fields and help contribute to real problems the firm had. It was a great experience, good enough that I decided to come back full-time!  I would say something that has helped me tremendously from my internship is the relationships that I created during that 10-week period. What’s your favorite memory from your time as an intern? I think my favorite memories were traveling with the veteran sales folks to business meetings and getting the opportunity to see what the job would actually be like if I were to come on full-time. What do you think the Cottingham & Butler internship program offers that other internships don’t? Cottingham & Butler's internship program truly treats interns as if they're a part of the culture, instead of temporary team members responsible for doing the work that nobody wants to do. The program lets you see where you fit in the company and whether you would be a good asset to the team. What drew you back to Cottingham & Butler after graduation? The people and relationships that I developed and the great opportunity to grow within the organization. Not too many companies do you see the growth or the success that young people have had in this company. How have you seen yourself evolve as a professional at Cottingham & Butler? I went from a college kid who knew nothing about insurance to a top-tier consultant in my specific niche. As an intern, I never would have guessed I'd be sitting where I am today or that I'd have the opportunities that lie ahead of me. What do you love most about your current role? I get to work with fantastic people all over the country and help them solve complex problems, protecting their businesses and property.

Early one morning during his senior year at St. Ambrose University, Colin Green rolled out of bed to attend one of his sales classes. Once seated, he noticed the arrival of two guest speakers—both from Cottingham & Butler—and settled in for their presentation. The rest, Colin says, is history. “At the time, I already had two internships at another insurance brokerage firm and had a job lined up. It was during that class and that presentation that made me think twice about my decision. Ultimately, I decided I wanted to learn more about C&B and what they had to offer.” Colin began his career at Cottingham & Butler as part of the Executive Development Program within the Risk Management Practice. He was tasked with building his expertise—to dig into the world of insurance, learn how to solve problems for clients, and ultimately grow the business. Colin quickly excelled, and in the following years, he achieved impressive sales milestones, consistently surpassing his new business targets. Colin’s early career successes eventually led him to take on a pivotal role as a founding member of Cottingham & Butler’s Madison, Wisconsin, office. Today, he serves as a trusted advisor for clients nationwide and a respected mentor for colleagues across the organization. “Looking back, the growth in our resources, capabilities, clientele, and personnel here in Madison is unimaginable. Cottingham & Butler has always believed in me and our teams’ capabilities.” In addition to his professional accomplishments, Colin treasures the personal opportunities that Cottingham & Butler has provided. It was here that he met his wife, with whom he now shares three beautiful children. “If I were to talk to someone who was considering applying, I’d tell them: just do it. It’s easily the best decision I’ve ever made. If you’re looking for a company that will support you, provide the resources to be successful, give you the runway to be your best, with the opportunity for advancement – this is the place for you.” >> Ready to build your own professional and personal success story? Explore our careers page and see if a role at Cottingham & Butler is the perfect fit for you!

They faced their fears, conquered a 12-story descent, and most importantly, helped raise funds for the United Way of Dubuque Area Tri-States! We're talking about 26 courageous Cottingham & Butler team members who participated in the local "Over the Edge" event, rappelling off a historical Dubuque building and showcasing not just their bravery but also the incredible spirit of giving that runs deep within our organization. But the impact goes far beyond these individuals’ daring feat, as collectively, Team C&B raised over $46,000 for our community! All funds raised go to UWDATS' Community Impact fund which supports 33 local programs impacting health, education, and financial stability/income.

When George Tompkins joined Cottingham & Butler, it marked an enormous shift in his career trajectory. George, who had spent over twenty years in a separate industry, was looking for something different. His desire to strengthen his web development skills while building applications eventually led him to pursue a position in Cottingham & Butler’s IT department as a software engineer. “I was attracted by the opportunity to create web applications in a corporate environment,” said George. “I spent over two decades in a different industry in an unrelated career. I credit a willingness to learn and a focus on the needs of those I serve as instrumental in my career switch and my growth at Cottingham & Butler.” George’s unique professional—and educational—background has made him an enormous asset to the corporate administration team, bringing to the table a meticulous attention to detail and passion for continued learning. “I have a BFA in Art from East Carolina University with a concentration in painting. Both art and coding have a technical aspect of ‘how to do it,’ and a separate element of solving problems when the next steps aren’t clear.” Working closely alongside his teammates has had a huge impact on George’s career journey, allowing him to tackle new skills and hone his talents within a highly collaborative environment. “There’s a wealth of experience to learn from here. When I started, I was initially immersed in courses to learn the programming languages and frameworks common to our codebase,” George said. “Shortly after that, I was given a project to develop a web application where I could actually put these new skills into practice. My mentor guided me through many roadblocks, answered all of my questions, and was always available to explain how things worked.” George continues to engineer top-of-the-line applications for Cottingham & Butler to consistently improve operations, grow the business, and build efficiency.

Our team is passionate about making Dubuque a better place, and they're turning that passion into action! Launched in 2021, a group of Cottingham & Butler employees came together to form the C&B Better Initiative, a grassroots movement dedicated to better understanding and supporting the needs of our community. Every quarter, hundreds of Cottingham & Butler teammates gather in person and virtually to connect with and champion three local organizations making a positive impact. This spotlight shines a bright light on some of the most pressing issues facing Dubuque and our surrounding community’s residents. But the C&B Better Initiative isn't just about awareness – it's about empowering positive change. The initiative unites the incredible giving spirit of our employees with the needs of our community, and together, we have already impacted thousands of lives across our community. The C&B Better Initiative grants have already made a significant impact across various causes, including: Providing 60,000 meals through support for a local mobile food pantry. Purchasing a vision screener to facilitate eye exams in Dubuque Public Elementary schools. Supplying basic female necessities for the Red Basket Project. Delivering mattresses for the local Better Sleep, Better Health program. Offering essential supplies and clothing for children entering foster care. Donating to a local women's and children's shelter, aiding victims of domestic abuse. Funding a 5-week summer program for local youth, focused on fostering better learners, readers, and heroes. We couldn't be prouder of our team and the ongoing impact they make within our community. The C&B Better Initiative continues to be a shining example of Cottingham & Butler's commitment to philanthropy and is a testament to the power of individuals coming together to make a real difference. Ready to make a difference? Discover how you can join our team of changemakers! Seeking assistance for your organization? Visit Grants Homepage | Community Foundation of Greater Dubuque (dbqfoundation.org) to learn more and apply for our grant.

Since joining Cottingham & Butler in 2016, Cassie Lowery has made a name for herself as a dynamic force in the Madison, Wisconsin, branch. Armed with a degree from Loras College, Cassie's journey with C&B began as an Associate Consultant in the Benefits Department, where she was introduced to the complex world of insurance. Reflecting on her early days at C&B, Cassie shares, "I heard about C&B while I was still a student at Loras College. It seemed like a great fit, and little did I know it would become my professional home for years to come." Her career trajectory within the company showcases her commitment to growth and continuous improvement. Starting from the ground up, Cassie worked closely with her mentor, learning the ropes of the industry and honing her skills. Eventually, she transitioned into the role of an Employee Benefits Consultant, gaining autonomy and building her own client base. Today, as a Senior Client Consultant, Cassie juggles a wide variety of national accounts and private equity projects. Cassie has been an integral part of various initiatives throughout her tenure. From championing mental health services to spearheading new-hire training programs, she has left a distinct mark on Cottingham & Butler’s culture. Notable among these are her contributions to the quarterly service newsletter, where she shares insights on relevant topics, strategies, and compliance updates. "I draw inspiration from my mentors at C&B," Cassie notes. "Their guidance instilled in me a passion for mentoring and fostering a truly collaborative work environment." With each project, Cassie gains invaluable insight, developing fresh perspectives and strengthening her collaborative skills. Her dedication to building relationships and nurturing talent has become a cornerstone of her career at C&B. With her unwavering enthusiasm and collaborative spirit, she continues to shape the landscape of insurance services while nurturing the next generation of industry professionals. >> Ready to join a team that provides you with the flexibility and independence to develop your ideas? Explore our careers page and discover where you belong!

The holiday season is a time for joy, togetherness, and giving back, and at Cottingham & Butler, every year we witness the true spirit of the season come alive through our annual employee Holiday Drive. This remarkable achievement wasn't just about the numbers; it was about the collective passion our team has for supporting organizations that make a real difference in the lives of others. Here are some highlights of how our team's generosity is making a positive difference: Toys For Tots Dubuque: Thanks to our team’s contributions, countless children in the Dubuque area will experience the magic of the holidays with a special gift under the tree. Opening Doors Dubuque: Our donations helped provide critical supplies and support to women and children experiencing homelessness, offering them a safe haven and a path towards a brighter future. The Barriers Project: We are proud to support the Dubuque Community School District’s Food Pantry + Clothes Closet to support essential needs for the district’s students and their families. Feeding America and St. Joseph's Food Pantry in Appleton: By contributing to these food banks, we are helping to combat hunger in our communities and ensure families have access to nourishing meals during the holidays and beyond. Local Causes: The Holiday Drive also benefited many other local initiatives close to our employees' hearts, further demonstrating our commitment to supporting the communities where we live and work. We are incredibly proud of our team members who help spread holiday cheer and generously support causes close to their hearts, especially during times of need. Our annual Holiday Drive serves as a prime example of our team's commitment to being #BetterEveryDay, as we diligently carry this spirit of giving throughout the year.