LUBA Workers' Comp
Company History
In the late 1980’s and early 1990’s, Louisiana employers were facing a workers’ compensation system in crisis. The lack of well-leveraged workers’ compensation providers, mismanagement of claims, and claims fraud were contributing to skyrocketing insurance rates. Many businesses in the state, which would have been sound risks in a healthy market, were unable to procure voluntary coverage. Unfortunately, the employers were cast into the non-competitive, exorbitantly priced Assigned Risk Pool. LUBA Workers’ Comp was founded to provide a practical means for Louisiana employers to satisfy their legal obligations of coverage to their employees and support their compliance with the Louisiana Workers’ Compensation Act.
LUBA Workers' Comp, originally a workers’ compensation group self-insurance fund, was established by the Louisiana United Businesses Association, a Louisiana nonprofit corporation representing the interests of businesses in Louisiana. In 1991, the year following its incorporation, LUBA Workers’ Comp began providing workers’ compensation and employers’ liability coverage to Louisiana employers with the core values of competitive pricing, superior customer service, and a commitment to improving safety in the workplace.
After 15 years of success as a self-insurance fund, becoming one of the largest writers of workers compensation coverage in Louisiana, LUBA Workers’ Comp took another giant step in its continued growth. In January of 2006, LUBA converted from a group self-insurance fund to a stock insurance company. The conversion enables LUBA to offer an even more valuable and secure product and cover a broader spectrum of business classifications without straying from those foundational core values.
Each year since 1994, LUBA has returned dividends to its policyholders, now totaling over $24 million. The return of dividends is based on the claims performance of each policyholder, and is an effective incentive for policyholders to be proactive with safety management in their business. LUBA utilizes a staff of dedicated and experienced loss prevention professionals to assist policyholders in the development of their individual safety programs. In many cases, policyholders are reimbursed over 50% of their annual premium (thus cutting their premiums in half) because of diligence in maintaining a safe workplace.
In April 2001, LUBA Workers’ Comp won the award for Company of the Year, presented by Baton Rouge Business Awards and Hall of Fame. For the eighth consecutive year, LUBA Workers’ Comp has earned a consistently improving position on the Greater Baton Rouge Business Report’s list of the area’s Top 100 Private Companies. In 2006, LUBA ranked 53rd in the listing, up from 65th in 1998.
Beginning in 2003 , A.M. Best Company, the world’s oldest and most authoritative insurance rating service, awarded LUBA Workers’ Comp a Rating of "A-" (Excellent), a designation given to companies that have an excellent ability to meet their continuing obligations to policyholders. In 2006 & 2007, Best affirmed LUBA's rating after its conversion to an insurance company. This rating reflects LUBA’s strong capitalization, proficient underwriting and excellent operating performance. LUBA’s "A-" rating is the highest inaugural rating of any of its competitors.
It is significant, particularly within the context of Louisiana’s competitive workers’ compensation environment, that LUBA Workers’ Comp has grown by approximately 10% each year since its inception, now covering approximately 4,300 Louisiana employer’s and over $65 million in in-force premiums. LUBA has solidified its place as a leading workers’ compensation insurer in the state of Louisiana and is poised to be the clear choice for the state’s employers for many years to come.
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