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Does Your Business Utilize Subsidy-Based Insurance or Performance Based Insurance?



Let’s begin with some simple definitions. Subsidy-Based Insurance (SBI) is traditional insurance, insurance coverage where the carrier keeps about 35% of your premium and your business is thrown into a pool of other unknown business, often with a mixed if not problematic loss history. Your rate is determined by external factors including these variable loss histories and safety programs of these unknown companies, plus insurance industry market variability (soft and hard market swings).

Performance Based Insurance (PBI) provides greater control, and guarantees you know the companies included in your risk pool. These companies focus on work safety, enjoy a good loss history, and typically receive significant dividends back on unused premium. Performance Based insurance often results in savings of 25% to 50% over traditional insurance plans, and offers companies a much greater degree of control over their ongoing insurance premiums.

Simply stated, here is an easy way to think of Performance Based Insurance versus Subsidy-Based Insurance.


  • SBI (Subsidy-Based): Premium determined by market rates and other companies loss history.

  • PBI (Performance-Based): Premium determined by your own loss history – “Pay By Performance”.


Take control of your insurance costs. Contact TriPoint today!

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Long known for innovation, TriPoint has been at the forefront introducing safety, HR consulting and Injury Management services to middle-market companies of all types. TriPoint is a national leader in Performance Based Insurance, which pays dividends to companies who have strong safety cultures and control their losses.

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