bbsi vcr program

Mike FlanneryArea Manager

Barrett Business Services1095 West Rio Salado Parkway

Suite -203 Tempe, AZ 85281T: 480 839 4400

VOLUNTARY COVERAGE RECOVERY

RESIDUAL MARKETRESIDUAL MARKET (ASSIGNED RISK POOL) V.C.R PROGRAM

Barrett Business Services Inc.ECOLE Insurance Company

NASDAQ: BBSI

Creating business solutions for company owners since 1951 | BBSI-Tempe.com | Barrettbusiness.com

Barrett Business ServicesNASDAQ: BBSI

Qualifi cations*

*other qualifi cations exist may depending on company size & industry

VOLUNTARY COVERAGE RECOVERY

RESIDUAL MARKETRESIDUAL MARKET (ASSIGNED RISK POOL) V.C.R PROGRAM

AZ Assigned Risk or Voluntary Coverage Cancellation

A minimum of $100,000 Payroll

Experience Modifi cation Rate less then 1.8

Established safety program

On-site Risk Assessment Approval

Program Highlights

Standard NCCI Voluntary Policy

On-site Safety/ HR compliance specialists

E-mod Reduction Plan

Claims closure assistance

Strategic Management Consulting/Services

Pricing AdvantageInitial 15% premium reduction

Safety incentive plan ( up to 30% annual premium)

Renewal Premium reduction of 15%(w/safety incentive qualifi cation)

Comprehensive services included



Partners in Profi tability

BBSIʼs mission is to build quality

partnerships with small to medium size

businesses to leverage human capital,

protect success, & regain a sharp focus

on their business.

Established in 1951, Barrett Business Services, Inc., (BBSI) is a publicly-held company based in Vancouver, WA. With 2011 annual gross revenues in excess of $1.6 billion and offi ces across the United States. BBSI is listed on the NASDAQ Stock Market (BBSI) as a recognized leader in the professional employment, on-site human resource management, workers compensation insurance, and worksite safety.

Barrett Business Services (BBSI) combines Pro-Active Risk Management, Claims Processing, and HR Services to create a platform diff erentiated from competitors.

BBSI has deep roots in the Insurance Business, Self-Insured in 6 states, in AZ we started our own insurance company named Ecole Insurance, a fully admitted workers compensation carrier.

Our company-wide loss ratios are among the lowest in the insurance industry. The success of our clients has allowed BBSI to maintain over a 90% retention rate with our portfolio of 3,000+ clients.

About BBSI & Ecole

BBSI Facts• 3,000 + Clients

• 70,000 Employees

• $1.6 Billion in Revenues (2011)

• 53 Offi ces

• 90% + Client Retention Rate

• 90% Safety Incentive Success

As one of BBSI’s 53 local branches, the Tempe Arizona offic-es of BBSI have earned an industry reputation of delivering high-quality service and customer satisfaction. Our client partnerships are built on long term mutual values, developed through a keen understanding of our clients’ needs and goals.


“ BBSI is so much more than just a workersʼ compensation insurance company. Theyʼre a managing partner in employee administration, claims mitigation, human resources consulting, & safety compliance.

Mike Taylor, COORoadmaster Transportation

“

How It All Works Together

Treating workers compensation as a manageable expense.

Over the last fi fty years, our company Barrett Business Services (Nasdaq: BBSI), has been privileged to assist many of America’s leading organizations as they struggled with this issue.

Our risk management model is founded on a three-prong approach: employee

development, site safety services and

incentive-based workers compensation

coverage.

The method is simple, based on interactive lo-cal management. It involves a concrete action plan and sound management.

More important, it works.

Many companies have identifi ed a basic truth about workers compensation: the worksite is the best place to control losses, and that they as employers have the maximum leverage to do so. These business managers no longer hand the problem off to their legislators, their insurers, or their attorneys; instead they manage workers compensation as a controllable expense. This fundamental shift in attitude empowers companies to take charge and improve.

What are the key steps prudent business owners take?

BBSI provides clients a unique cost containment solution.

Dedicated Local Experts:

• Human Resource Management

• Safety/Risk Services

• Workers Compensation Coverage & Administration Each focused upon leveraging client resources, protecting success and helping our clients regain a sharp focus on their business.



HR issues are workers compensation risk.

Partnering with BBSI gives businesses access to some of the most highly recruited HR professionals in the country. Our HR professionals frame HR issues in business terms as they all have boots-on-the-ground experience in helping run organizations of all shapes and sizes. This is the best time to have a valued partner in BBSI because many of the most crucial problems organizations will face in the future are those that HR can help solve.

We provide assistance in each of the following vital areas: (This is not an all-inclusive off ering)

DiscriminationIn 2011, the EEOC reported the fi ling of the highest number of discrimination charges in the Agency’s history.

HR JobsIn 2010, approximately 35% of the top HR jobs in the United States were fi lled with individuals who have a non-HR background. In 2005, that number was 18%.

ObamaPresident Obama promised change, and we are con-tinuing to see signifi cant change to the layout of em-ployment laws and regula-tions. To date, there have been more than two dozen proposed changed employ-ment laws and regulations.

HR leaders who strategically contribute to their organizations are making huge im-provements -- but they are the exception. Too many HR professionals focus on com-pliance and HR metrics, when they should be focusing on crafting programs that can make a strategic diff erence to their organi-zation.

Many companies do not have a fi rm grasp on human resources. Do you think they have the HR puzzle piece covered? Con-sider for a moment the following:

Human Resource Management

• Talent Management and Succession Planning

• Job Analysis and Compensation Design

• Sourcing, Recruitment, Selection, and Onboarding

• Employee Leadership Training and Development

• Performance Management Systems

• Employee Engagement and Retention Strategies

• Employee Handbook and Policy Development

• Employee Leaves Compliance and Administration: FMLA, STD, WC, AZ PLA

• Harassment Training and Investigation

• ADA/ADAAA Accommodations/ Compliance

• Dealing with Diffi cult People

• Eff ective Communication Strategies

• Team-Building

• Terminations

• Compliance Audits: Federal and State



Safety Services and Compliance

Afraid OSHA might come knocking?Maybe they did already? Over the last few years, OSHA has steadily ramped up its en-forcement eff orts by increasing inspections, being more proactive, increasing violations issued, increasing the serious nature of the violations and increasing the penalties.

Does your company have the safety puzzle piece covered? Consider for a moment the following:

OSHA InpectionsSince 2006 the number of OSHA inspections each year has increased from 38,579 to 63,000 for 2011, a 39% increase.

OSHA ViolationsOSHA’s increased num-ber of inspections has resulted in an increased number of issued vio-lations. Compared to 2006, when OSHA issued 82,804 violations, there will likely be more than 165,000 violations issued in 2012.

OSHA FinesIn 2006, there were 101 cases considered to be “signifi cant” by OSHA. “Signifi cant” cases are those cases with penal-ties exceeding $100,000. In 2011 there will most likely be close to 270 “sig-nifi cant” cases, a 167% increase. Egregious cases (those exceeding $1MM) increased 450% since 2006.

There is every indication that these trends will continue in 2012. BBSI Risk Management Professionals are paid to prevent problems before they arise. Upon the success of their eff orts your clients will be rewarded a return of their work comp premium-up to 33% of their overall premium! With over 90% of BBSI’s clients receiving a return of premium each year—we simply hire the best that money can aff ord.

We provide assistance in any of the following areas: (This is not an all-inclusive off ering)



• Accident Investigation

• Accident Prevention

• Compliance Audit

• Creating a Zero-Accident Safety Culture

• Employee Training

• Injury Illness and Prevention Program

• Safety Policy Manual Development

• SMITH System® Training

• Understanding OSHA’s Requirements: Federal & State

• Understanding EPA Requirements

BBSI Risk Management

Cost-Saving Workers Compensation



The real cost of workers compensation is fraught with hidden losses; the actual cost is much higher than the insurance pre-mium or benefi ts paid out. Do your company track the hidden, indirect costs related to workers compensation? In 2012, Arizona workers compensation costs will be increas-

ing. Carriers will be leaving riskier markets. Employers will

be looking for an alternative to the traditional carrier model.

They will be looking to improve their situation.

Does your business have the workers compensation puzzle piece covered? Consider for a moment the following:

Medical Infl ationMedical treatment now ac-counts for 60% of workers compensation loss costs-- medical cost infl ation is now a quantifi able factor in the workers compensation marketplace.

Troubled Markets In 2010 SCF Arizona and private carriers combined experienced expenses and losses exceeding 132% of premiums.

In 2010 workers compen-sation claim frequency increased 5%--the fi rst such increase in over 7 years.

Residual market share (AZ’s Assigned Risk Pool) doubled in 2011.

Hidden CostsAccording to a study by OSHA, the hidden cost of a medical only work comp claim is 4.5 times the direct cost (the medi-cal and indemnity ben-efi ts). Also, OSHA cites that for every $1 of work comp disability pay-ments a company incurs between $2 and $10 of uninsured, indirect costs.

The economy continues to struggle. Employer costs are escalating.

• Safety Reward Program (up to 33% return on premium)

• Local Claims Management & Payment

• Medical Provider Network & Strategic Partnership w/ Corvel Corp. to mitigate medical cost infl ation

• Competitive rates

• No deposit, No audits, No surprises - Pay-as-you-go

• Premium payments based on actual payroll-in arrears

Now is the time to position your company for the future with the VCR program. Managing workers compen-sation costs requires foresight, preparation and execution, but business owners and managers do not have to do it alone.

WE CAN HELP

BBSI Workers Compensation:

bbsi vcr program

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