Workers' Compensation Trade Group

Controlling risk, saving lives

As you may know all too well, logging is an inherently dangerous profession. Because of the risks involved, the cost of workers' compensation insurance greatly exceeds that of other professions. These high costs have an adverse affect on employment and on compliance with Montana's workers' compensation laws.

In 1980, the MLA and the State Fund began a partnership to promote safety and loss control within Montana's logging profession and to enhance compliance with Montana's workers' compensation laws. Over 25 successful years later, the MLA and the State Fund remain committed to these goals as demonstrated by a Trade Group Agreement.

Trade Group Agreement components:

Safety & Loss Control: The MLA is authorized to develop member-specific loss control measures and to conduct on-site safety consultations for MLA members. This component also expands the State Fund's capacity to provide for a safe working environment.

Premium Payment: This component allows MLA members to pay premiums on a monthly basis and on actual wages paid, as opposed to the standard practice of prepaying premiums on an estimated basis. The members pay a 20% deposit based on an estimated annual premium. This also promotes the timely reporting of payroll and facilitates the regular payment of large premiums incurred by many in the logging profession.

Incentive: In addition to the service-related components of the Trade Group Program, participants are eligible to benefit from a group retention dividend. This incentive provides for a safety dividend to participating members if the loss experience of the Trade Group as a whole does not exceed 35 percent during the contract year.