POSTING For Website & Newsletter - John Leonard, CEO, Maine Employers Mutual Insurance Company
November 13, 2007 Member Meeting

The November CFMA meeting was a huge success. John Leonard, CEO of Maine Employers Mutual Insurance Company came to the Brewer Muddy Rudder for an evening discussion on the history of the workers compensation market in Maine and the wonderful success of workers comp today.

John was proud to tell us about the $14 million dividend that has been returned to policyholders across the State this month and the projected dividends of $16 million next year followed by $18 million in 2009 and $20 million in 2010. Part of this savings has come from MEMIC’s expansion into other States as they bring the profits back here to help Maine business.

As a member of the NCCI board John was able to explain that the rates are dropping by about 2.2% for the average workers comp classification in Maine and for contractors specifically they will see a little over a 5% reduction in their rates. This comes from Maine Companies being more proactive about operating a safe workplace.

During the question and answer period John spoke about the move from manufacturing to a more service oriented business in the State. This change is having an impact on the reduction in claims that they have seen at MEMIC. 

Mr. Leonard shared with us the introduction of an exciting new product for customers of MEMIC. Starting in 2008 they will offer Employment Related Practices Liability Insurance (EPL) as an optional coverage. John explained that the coverage will offer employers protection from claims of wrongful termination and discrimination.

EPL coverage will be as low as $32 per person for some classifications. This will make EPL coverage affordable for many small business owners who could never afford it before. This added benefit will also include support to the employer by giving them counsel to work with on employment related issues.  John stayed after the meeting to meet with our membership and discuss various topics of interest as well.

Respectfully Submitted by Brent Cross, CPCU