Gevity (NASDAQ:GVHR), a full-service human resources department for small and midsize businesses, has renewed its workers' compensation agreement for 2008 with member companies of American International Group (NYSE:AIG).
As with the company's current compensation program, the 2008 agreement requires that regular payments be made to AIG to cover program costs and loss funds held for payment of future claims. Gevity will be liable for the first $1 million of claims per occurrence. Higher than previous years, this deductible level lowers premium costs.
"The terms of the 2008 workers' compensation program are a credit to a solid partnership we share with AIG," Michael J. Lavington, Gevity's chairman and CEO, said in a statement. "By increasing our deductible, we were able to drive our program costs lower. We were comfortable with this greater level of risk assumption due to our favorable trends of claims greater than $500,000 and the effective underwriting and claims management controls we have in place."