Participants of the Fund must be a club owner whose manager is a member of the Greater Michigan Club Managers Association or a member of the Michigan Golf Course Association. Membership is limited to any club organized under the laws of the State of Michigan and operated as an athletic, yacht, golf, country, hunt, ski or riding club and shall meet such other qualifications as may from time to time be set by the Board and appropriate governmental authorities.
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 clubs industry, which covers the following classifications:
- Country Clubs
- Athletic Clubs
- Hunt Clubs
- Riding Clubs
- Golf Courses (public & private)
- Yacht Clubs
- Ski Clubs
- Fund members pay premium 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 premium 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 Clubs Self Insurance Workers’ Compensation Fund (Clubs Fund) was established in 1983 as a way to control the long-term workers’ compensation costs for the members of the Detroit Clubs Managers Association. Recently the Fund received endorsement from the Michigan Golf Course Owners Association. Today, several of the finest country clubs, golf clubs, golf courses and yacht clubs throughout Michigan rely on the Clubs Fund for their workers’ compensation coverage.
How the Fund Works
The Clubs 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 Clubs 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 50 percent of the premiums paid.