WGA guarantees

Each spring and fall, Dutch companies face the choice of how to deal with their WGA disability risk: participate in the public insurance system or buy private insurance.

Thanks to Liberty Mutual Surety there is a third way to deal with WGA risk: true self retention. You know where you stand and the benefits of a sound prevention policy will be completely yours.

Large employers who no longer want to participate in the public system or buy private insurance against disability of their employees can now take full responsibility for WIA disability payments and the cost of reintegration services to their staff. Many employers prefer to take these expenses for their own account rather than pay a premium  to the public insurance system or to a private insurer because there are no additional fees and charges, which brings down the expense. If companies have a low disability rate because of a sound prevention program or because of the make-up of their employee population, they have even more reason to sef-insure because neither the premium rates of the public system, nor those of private insurers do full justice to an individual company’s positive deviation from sector averages.

The only condition for self-insurance is that an employer provides a guarantee to the Dutch tax office from a financial institution that will take over the employer’s payment obligations in case the employer can no longer continue them.

Liberty Mutual Surety is prepared to issue such guarantees for companies who meet our financial stability conditions, enabling them to become truly self-insured.

Each July 1 and January 1, an employer can elect to self-insure. You must file your request with the Tax Authority at least 13 weeks in advance (before April 1 or October 1) and include a guarantee with your request.

If you’d like to know more about WGA guarantees, please contact Marc Vader (+31 6 2157 8137, marc.vader@libertymutual.com) or Martijn Verwijs (+31 6 5576 3369, martijn.verwijs@libertymutual.com).They know everything about WGA guarantees and they are able to show you how much your company can save by self-insuring WGA risk. The only prerequisite is that your company has at least 250 employees or a payroll of at least € 10 million so that future disability inflow can be reliably estimated.