Participants of the Fund must be a member of the Michigan Nursery and Landscape Association or the Great Lakes Floral Association. Non-members may receive a proposal from the Fund. Upon joining the Fund, the business would then be required to join the appropriate association.
To be eligible, a business must serve in the horticulture industry as a contractor, subcontractor, or a supplier and must meet underwriting review based on loss history. The Fund covers a wide variety of classifications such as:
- Garden Centers
- Sod Farms
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- Fund members pay premiums into the Fund. Premium is calculated based on the payroll and loss experience of the member.
- The Fund invests the premium until it’s needed to pay claims.
- Approximately 25% of premiums goes toward operating expenses and the purchase of excess insurance.
- The remainder of collected premium dedicated to member claims.
- Premium not used to pay Fund expenses or claims is returned back to the members, along with any investment income earned.
History of the Fund
The Michigan Horticulture Industries Self-Insured Workers’ Compensation Fund (MHI Fund) was established June 1, 1993 as a way to control the long-term workers’ compensation costs for the members of the Michigan Nursery and Landscape Association and the Great Lakes Floral Association. It was endorsed by both organizations.
Today, over 600 of the finest skilled landscapers, nursery owners, and florist throughout Michigan rely on the MHI Fund for their workers’ compensation coverage.
How the Fund Works
The MHI Fund, administered by RPS Regency , is owned by its members and operates similar to an insurance company – providing the same employer protection and paying claims to employees injured on the job. The Fund saves members money by operating with reduced overhead, aggressively managing its claims and through industry-specific loss control efforts. The money that is not used to pay for claims, and any investment income, is returned back to the members over time.
As the Fund ages, members receive profit returns from a number of Fund years. Also, the MHI Fund is protected from large losses by the purchase of excess loss insurance, further enhancing stability and profitability. Over the Fund’s history, members on average have received profit returns equal to 46 percent of the premiums paid.