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RIs largest workers compensation insurer will reduce rates for two-thirds of its policyholders

By: The Providence American
Posted: July 20, 2010

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  • Beacon Mutual Announces Significant Rate Reduction

    Warwick, RI  Calling it Beacons economic stimulus package for Rhode Island, James V. Rosati, president and CEO of The Beacon Mutual Insurance Company, announced today Beacon has initiated a tiered pricing structure substantially reducing workers compensation insurance rates for 8,000 Rhode Island small businesses. Beacons qualifying small business policyholders will see rate decreases averaging 17 percent, effective with new business written and policy renewals beginning October 1, 2010.


    In addition, qualifying businesses will continue to be eligible for additional loss free credits of up to ten percent.


    During the past four years, Beacons rates have been reduced by approximately 40 percent for all policyholders. With the addition of this latest pricing structure, approved by the Rhode Island Department of Business Regulation, two-thirds of its policyholders - mostly from Rhode Islands small business community - will see workers compensation rates, on average, cut in half since 2006.


    Despite these rate decreases, the adverse impact of a poor economy, high unemployment levels and declining payrolls, Beacon has remained financially strong due to efforts taken to reduce operating costs and improve efficiency and productivity through innovation and automation.


    Because we have taken proactive measures to ensure Beacons financial strength, we have been able to fulfill our mission to bring stability to Rhode Islands workers compensation market and can continue to offer our policyholders affordable insurance without jeopardizing the quality of our services, said Rosati.


    Rhode Islands small business community, which accounts for a large part of the states economy, will especially benefit from this new pricing structure. We are certainly pleased in these difficult economic times to provide a local form of economic stimulus for our policyholders. It rewards companies who invest in the safety of their employees and embrace our loss-prevention best practices, added Rosati.


    Beacon Mutual is a Rhode Island based mutual insurance company, providing affordable workers compensation insurance to Rhode Island businesses. Beacons underwriters, loss prevention specialists and claims personnel are all located in its Warwick headquarters. Beacons local presence contributes to the Rhode Island economy and results in better service for its agents and policyholders.

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