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Thoroughbred Times

Posted: Wednesday, October 09, 2002

Northern California trainers support workers' comp deal

Support among the Bay Area's major trainers for California's new workers' compensation insurance plan appears strong, according to Charlie Dougherty, manager of California Thoroughbred Trainers' (CTT) Northern California office.

"We met last week," Dougherty said, "presented the facts to the trainers, and gave them a work sheet to help them get a sense of what they would be paying. I know that of the trainers with the larger stables, pretty much all of them will switch over."

CTT negotiated a proposal with American International Group (AIG) to replace the government-backed State Fund Insurance as principal workers' comp carrier. One contingency of the plan is a minimum level of participation by the state's trainers, based on a percentage of total premiums paid.

Rates under the new agreement are 30% less than State Fund's for insuring jockeys and 35% lower for coverage of backstretch employees. Recent legislation signed by Governor Gray Davis authorized redirecting some funds from a horsemen's marketing account and other sources to help defray the costs of premiums.

Dougherty said some trainers might not be able to sign on immediately with AIG because of "not being able to get their deposits back from State Fund" in a timely manner and also because of possible penalties for early withdrawal being levied by the current carrier.

But Dougherty added that a number of months ago, when it appeared CTT had a deal with a different company, State Fund "made a commitment" to forego any punitive action against trainers who had contracted with them.

"We're working with State Fund on this," Dougherty added.

Trainer Armando Lage, who currently has 68 horses under his care at Bay Meadows, said he finished the necessary paperwork recently and submitted it to CTT.

"This new deal definitely will work for me," Lage said. "It has to, because the rates I have to pay now are too high." —Jerry Klein

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