AUSTIN, Texas - The Associated Plumbing-Heating-Cooling Contractors of Texas (PHCC Texas) is in the midst of organizing a worker's compensation self-insurance program. The chapter has collected financial data from interested members, and First Cardinal of Texas, the administrator, is now asking for members who will act as trustees. Once an application to the Texas Department of Insurance (TDI) is approved and the trustees are in place, the program will be ready to go.

Although self-insurance programs have been available to public entities in Texas for years, they only recently became available to professional or trade associations. According to State Executive Manager Nancy Jones, the proposed Texas program has been fine-tuned by the TDI to protect everyone involved. She added that the self-insurance concept is so new that the TDI has only approved one application so far.

Jones explained that PHCC Texas became interested in a self-insured workers' compensation insurance program as a means to lower premium costs and gain more control of the program. It also provides an opportunity to increase membership in the association.

A self-insurance group is a member-owned, not-for-profit corporation or trust formed to provide statutory workers' compensation and employers' liability coverage. In the Texas self-insurance program, the association members will pool their premiums to pay losses and administrative expenses. Members will pay a premium based on their experience (losses) and exposure (payroll).

Publication date: 07/26/2004