Loss Portfolio Transfer (LPT)
We are excited to announce that Loss Portfolio Transfer (LPT) coverage is now available to our customers.
What is a Loss Portfolio Transfer (LPT)?
A Loss Portfolio Transfer (LPT) is used when a self-insured organization wants to withdraw from managing their workers compensation coverage. An LPT is a “buyout” of retained liabilities and is also known as a “tail”. It transfers your existing and future claim liabilities (tail) to another company. By purchasing an LPT you are also transferring the administrative costs to the new company.
An LPT is used when a self-insured entity is:
- No longer active
- Has merged with another organization or
- Has exited a line of business
Why Secure a Loss Portfolio Transfer?
If you are converting or about to convert from a self-insured worker’s compensation program, then an LPT may be a solution for you. This program lets inactive self-insured entities (or soon to be inactive entities) transfer their tail coverage.
Loss Portfolio Transfer (LPT) benefits may include:
- Elimination of potential future state group assessments
- Transfer of all existing and future liabilities
- Potential release of collateral from the state
- Elimination of associated administrative costs
An LPT may be the solution you are looking for!
Who Benefits from an LPT?
These industries have benefited from transferring workers’ compensation insurance liabilities (tail) using an LPT:
- Automotive
- Business
- Healthcare/Hospitals
- Manufacturing
- Retail
- Service
- Technology
- Transportation
Our partnering company would assume existing and future claim liabilities (tail) through the transfer of the insurer’s loss reserves and put together a cost estimate.
The management team of AHA will work with you and guide you through the process. To see if our LPT Program is right for you contact Joan Guarino, Regional Director at 609.865.5340.