RENO, Nev.--(BUSINESS WIRE)--Sept. 17, 2008--A recent national survey of restaurant decision-makers finds that they place too much emphasis on the price of their workers' compensation insurance, potentially forgoing the long-term financial benefits of accident prevention and other loss control measures.

The survey results, released by Employers Holdings, Inc. (EMPLOYERS) (NYSE:EIG), whose subsidiaries specialize in insurance for small businesses, found that most workers' compensation insurance decisions are made by restaurant owners themselves (96% of the time). The survey also found that price is the key criterion that drives the workers' compensation decision for 71% of restaurant owners and managers--and that restaurants are more likely than other small businesses to switch carriers based on price.

While nearly half of all restaurant survey respondents reported having had at least one costly workers' compensation claim in the past five years, 61% of survey takers who switched carriers at their last renewal switched because of price--and no restaurant owners participating in the survey reported switching carriers to obtain more effective loss control and safety program support.

"Price can logically serve as a deciding factor in many restaurant purchases, but when it comes to workers' compensation insurance, a carrier's claims management, financial strength, safety and loss control expertise can bring added value," noted Martin Welch, President and Chief Operating Officer of Employers Compensation Insurance Company and Employers Insurance Company of Nevada, insurance subsidiaries of Employers Holdings, Inc. (EMPLOYERS).

Both the price sensitivity and busy schedules of restaurant owners are recognized by trade groups and industry associations which frequently ally with insurance carriers to offer association members group incentives, industry-specific expertise, and loss control programs. Restaurant decision-makers in the survey weighed their trade group's recommendation as extremely important (rated 9 or 10 on a 1-10 scale) when they purchase workers' compensation insurance. Yet despite the importance placed on restaurant association recommendations and potential savings through group incentives, only about 1 in 10 survey-takers reported buying workers' compensation insurance through an association.

The CEO and President of the nation's largest restaurant trade group, Jot Condie of the California Restaurant Association (CRA), said, "EMPLOYERS was endorsed as the CRA's workers' compensation insurance provider only after exhaustive research and careful evaluation of its insurance product and services. The CRA takes the time on behalf of its busy members to make sure its endorsed provider is financially stable, accessible, and responsive to the needs of busy restaurateurs."

EMPLOYERS released survey results on the restaurant industry, obtained through its semi-annual Small Business Market Monitoring Program conducted in collaboration with Profile Marketing Research, Inc., of Lake Worth, Fla. Restaurant industry-specific data was collected through telephone interviews with a representative industry sampling of 107 respondents representing eating places with 5-99 employees. Overall survey results have a +/- 9.47 percent margin of error.

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RESTAURANT OWNERS:

TOP TEN QUESTIONS TO ASK ABOUT YOUR WORKERS' COMPENSATION COVERAGE

When your workers' compensation renewal notice arrives this year, what are you going to ask your agent?

Based on small business survey results from EMPLOYERS(R), America's small business insurance specialist.(R) restaurant decision-makers might consider asking:

1. What accident prevention or other value-added services do I receive along with my workers' compensation insurance coverage?
2. Does my workers' compensation carrier have sufficient experience with restaurants to understand my operation's needs?
3. Are there accident investigation and fraud prevention tools available to help me detect fraudulent claims?
4. Can I get a flexible payment plan from my workers' compensation carrier?
5. Does my carrier offer access to an online safety library that I can use to build my own safety program?
6. Can I combine my workers' compensation insurance premium payments with my existing payroll system or healthcare insurance?
7. How fairly and efficiently does my workers' compensation insurance carrier handle claims?
8. Does my carrier offer a medical provider network that can help me keep medical costs associated with an injured worker's claim to a minimum?
9. Is my carrier financially strong and dedicated to remaining in my state's insurance marketplace?
10. Does my workers' compensation insurer have multi-state capabilities to grow along with my growing restaurant business?

The Small Business Marketing Monitoring Program is a semi-annual survey measurement of workers' compensation insurance industry trends, conducted by EMPLOYERS. Additional information is available by visiting www.employers.com.

Copyright (C) 2008 EMPLOYERS. All rights reserved. EMPLOYERS(R) and America's small business insurance specialist.(R) are registered trademarks of Employers Insurance Company of Nevada. Workers' compensation insurance and services are offered through Employers Compensation Insurance Company and Employers Insurance Company of Nevada. Insurance coverage not available in all jurisdictions.

CONTACT:
EMPLOYERS, Reno
Trish White, 775-327-2636
Director, Corporate Communications
twhite@employers.com
www.employers.com

SOURCE: EMPLOYERS