The Program
History
The Household Industries Self-Insured Group began operations on December 1, 2005, following approval of their operating plan by the Office of Self-Insurance Plans, Department of Industrial Relations. Since the launch of the program, membership has increased by over 500%.
HISIG Is Strong and Secure
HISIG meets higher standard of financial security in reserving for claims than any insurance company in California. The strong reserves maintained by the program ensures that members will always be part of strong, secure financial program that covers their Workers’ Compensation liabilities.
Return of Funds
Rapid claims closure and expert claims management have helped HISIG deliver superior results for members. Even as HISIG has maintained competitive rates for members and additional reserves for claims security, the group has returned $250,000 to members that has not been needed to pay claims and expenses.
Stable Costs, Outstanding Service
HISIG is positioned to keep costs stable for retail employers as Worker’s Compensation costs again begin to escalate in California. Members get service and support on claims and safety they cannot get anywhere else – that translates to long term savings and real value.
HISIG: Myth vs. Fact
Myth 1: If I join a self-insured group and somebody else in the group has a catastrophic claim, I will have to pay more money and it could threaten my business.
Fact: HISIG is comprehensively protected against catastrophic injuries, such as fatalities and paralysis, by special coverage called “excess insurance” (sometimes referred to as “reinsurance”). An excess insurer is an A rated carrier with substantial surplus. In the case of a catastrophic event, such as an earthquake or violent robbery, HISIG is responsible for the first $500,000 of claims costs. After that limit has been reached, the excess insurer pays all costs of all claims, whether it is 1 claim or 100 claims. Catastrophic injuries do not in themselves trigger further payments by members.
Myth 2: HISIG is financially risky.
Fact: CHSI has a team of financial professionals who closely manage the financial health of HISIG. The Board of Trustees for HISIG is comprised of business owners. CHSI produces monthly financial reports to the Board that are on par with Fortune 100 companies. HISIG is required by California law to set aside claims reserves that are 50% greater than those of insurance companies. Rates are established each year in liaison with a certified actuary to ensure that HISIG will be able to meet this higher level of security. HISIG submits annual audited financial statements to the Office of Self-Insurance Plans, Department of Industrial Relations, and operates by the strictest regulations for self-insurance groups in the United States.
Myth 3: If another self-insured group falters, HISIG and my business can be forced to pay for their liabilities.
Fact: HISIG has in place tight financial controls with strong supervision. In addition to annual financial audits and requirements for protection against catastrophic losses, self-insurance groups in California are required by law to maintain the highest level of security for claim costs in the industry. If a self-insurance group were to get into financial difficulty and require additional funding, they would be obtaining that funding from their own members, through a “special assessment,” an increase in rates, or both.
Board of Trustees
Chip Kurzeka
Chip Kurzeka grew up working closely with his father at their family store, Franklin’s Hardware in Woodland Hills, CA. In 1982 Chip purchased Franklin’s from his father and continued the family atmosphere and connection to the community that made Franklin’s an important part of Woodland Hills. Today, Chip is proudest of the fact that he knows his customers as well as he does and that Franklin’s owes its success to that community commitment. His professional associations include member of the National Retail Hardware Assoc., the Woodland Hills Chamber of Commerce Assoc., the Allied Hardware Dealers Assoc., the Pacific-South West Hardware Assoc., and the American Wholesale Hardware Assoc. Chip has a Bachelor of Arts degree in Economics from Santa Clara University.Russ Wilson
For over three decades Russ Wilson has owned and operated the West Hollywood landmark, Koontz Hardware. The company, which prides itself on seemingly endless and diversified inventory, has served the Beverly Hills, West Hollywood, and West LA communities since 1938. In 1993 Russ was chosen Businessperson of the Year by the West Hollywood Chamber of Commerce and the West Hollywood Small Business Council for his contributions to the community. He is a founding member of the Westside Economic Collaborative, a regional economic development organization and resides on the board of the West Hollywood Green Building Program. Before owning Koontz Hardware, Russ was a Navy Supply Corps officer in Vietnam for three years.Garth Smith
Garth Smith joined the family business, Dale Hardware, in 1978 after graduating in 1976 with a degree in Math and Physics from San Jose State. Garth’s father opened Dale Hardware in1955 and the store has become a Fremont institution in the years since. In 1983, Dale Hardware moved from its original 10,000 foot facility to the current 40,000 foot building. In 2010, Dale will take its next big step under Garth’s leadership when it opens a new 100,000 foot store. Dale Hardware was built on and continues to drive its business from the one on one customer support provided by its team. Garth has maintained his local commitment as a Past President of the Centerville Business Association, a position he held for 8 years. In 2005, Garth lead the effort to found the Home Improvement Self-Insured Group (now Household Industries Self-Insured Group - HISIG) to give the smaller retailer the opportunity for greater control over Workers’ Compensation expenses, to support their independence and competitiveness.Bill Griffin
Bill Griffin is CEO of Griffin Ace Hardware Co., which operates three stores in Southern California. Bill grew up working in the family business, which was started by his father in 1953. He obtained his Associate of Arts degree from Santa Ana Community College and attended San Diego State University and California State University at Fullerton, where he pursued his Business Administration. He ultimately purchased the family business upon his father’s death in 1985. Additionally, Bill has served on numerous trade association boards, including a ten year term on the board of directors for the National Retail Hardware Assoc., serving a term as president from 1993 - 1994. He was also president of the Pacific Southwest Assoc. in 1982 and president of the California Pacific Southwest Hardware Assoc. in 1984. He and his wife, Sharon, reside in San Clemente, CA and are active in their local church. They are the proud parents of three daughters and eight grandchildren.
