BBSI Renews Workers' Compensation Insurance Arrangement With ACE Group
VANCOUVER, WA -- (Marketwired) -- 01/20/15 -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions, has renewed its workers' compensation insurance arrangement with ACE Group.
The arrangement, which began in February 2014, provides coverage to BBSI employees in California. The renewal is effective through January 2016 with the potential for continued annual renewals thereafter.
The agreement, typically known as a fronted program, provides BBSI with a licensed, admitted insurance carrier in California to issue workers' compensation policies on behalf of BBSI. The risk of loss up to the first $5.0 million per claim is then retained by BBSI through a reinsurance agreement.
While BBSI assumes the first layer of risk, ACE bears the economic burden for all costs in excess of $5.0 million per claim.
"Over the past year, ACE has done more than just provide our company with insurance," said Michael Elich, president and CEO of BBSI. "Their senior team has taken the time to truly understand our business and they have become a valuable partner. We look forward to a continued successful relationship as we focus on supporting our growing client base."
The arrangement with ACE addressed the requirements of California Senate Bill 863, under which the Company cannot continue its self-insurance program in California beyond January 1, 2015. All of BBSI's California clients were transitioned to ACE policies prior to the 12/31/2014 deadline.
About ACE Group
ACE Group is one of the world's largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.
BBSI (NASDAQ: BBSI) is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting to create an integrated operational platform that differentiates it from competitors. The company's platform is built upon expertise in payroll processing, employee benefits, workers' compensation coverage, risk management and workplace safety programs, and human resource administration. BBSI's partnerships help businesses of all sizes improve the efficiency of their operations. BBSI works with more than 3,000 clients across all lines of business in 23 states. For more information, please visit www.barrettbusiness.com.
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Source: Barrett Business Services, Inc.
Released January 20, 2015