Kentucky AGC Self-Insurers’ Fund

The Kentucky Associated General Contractors Self Insurers’ Fund has been providing workers’ compensation coverage to contractors for over 40 years.

In order to fulfill a coverage gap in the market in the late 1970s, a group of contractors established a self-insured fund, bringing an innovative approach to offer a strategic insurance solution for Kentucky-based construction businesses.

Today, The Fund provides coverage to more than 3,200 policyholders (members), including commercial contractors, residential builders, heavy commercial contractors and manufacturers, among others. It enables them to manage their insurance premiums actively and promotes a collaborative approach to risk management.

One of the most significant features of The Fund is its best-in-class dividend program. Over the past 30 years, The fund has returned over $260 million in premiums to its members, with $15 million distributed last year alone. These dividends are a testament to the fund's strong financial performance and enduring client loyalty.

Stephen Lewis, CEO, highlights the market position and competitive advantages: “The Fund continues to be a major player in the workers’ compensation marketplace with over half of the market share of contractors. Competitive pricing, out-of-state coverage, and impressive dividends are all drivers to the ongoing success of the organization, and we are constantly seeking out new ways to improve member experience.”
Innovations in Workers' Compensation

The Fund excels in streamlining workers' compensation processes, emphasizing safety and ensuring financial stability. New members receive a detailed onboarding kit, which includes claim procedures and risk management protocols, complemented by personalized consultations with claims coordinators. This thorough onboarding process ensures businesses are well-prepared and confident from the outset.

The fund offers a flexible payment model that aligns with payroll fluctuations—ideal for contractors facing seasonal business changes. This pay-as-you-go system eliminates upfront payments, allowing premiums to be calculated based on actual payroll, enhancing cash flow management.

Moreover, The Fund provides a comprehensive suite of resources tailored to the specific needs of businesses. This includes job site safety evaluations, regulatory compliance guidance and extensive educational materials. An experienced team of safety consultants conducts site visits and workshops, empowering companies to proactively manage workplace hazards.

The fund's proactive claims management system ensures swift resolution of claims, minimizing disruption and maintaining business continuity. There are also helpful online solutions to check claim status or connect quickly with an assigned adjuster.

The Fund's A-/Excellent rating from AM Best underlines its reliability and financial strength, important to the agent and broker community and further establishing its overall strong market standing.

A Vision of Expansion and Partnership

With over four decades of experience, The Fund is eyeing growth, targeting an 8-10 percent compound annual growth rate. The fund plans to expand its reach within the manufacturing sector, building on its past successes. This strategy reflects a commitment to long-term stability and a continued focus on its foundational mission.

In an industry landscape with significant risks, The Fund aims to equip members with essential tools for building safer, more successful companies and protecting their employees. By continuing to innovate and improve strategy within the workers' compensation market, the Kentucky AGC Self Insurers’ Fund has its sights set on continued financial strength, improved member experience and future growth achievement.