NEW YORK – September 13, 2022 – Ullico Casualty Group, LLC, an insurance solutions provider for labor organizations, and NFP, a leading insurance broker and benefits consultant, have partnered with the New Terminal One, a consortium of labor, operating and financial partners building a world-class, all-international terminal at JFK Airport. Through this partnership, they have successfully integrated an Alternative Dispute Resolution (ADR) program into the JFK Airport project, creating a culture of safety, support and security for workers.
ADR is an independent system for administering union workers’ compensation claims. It is designed to provide better medical care while lowering insurance costs. The new model, the first ADR program agreed to by the Building and Construction Trades Council of Greater New York in 20 years, has national implications for union workers, generating opportunities for union labor to be more competitive and securing construction agreements that previously would have been awarded to non-union workers.
“This landmark initiative makes labor more competitive in New York City and across the United States and provides significant economic opportunities for workers, their families and communities,” said Dr. Gerrard P. Bushell, president and CEO of the New Terminal One. “Our equity sponsors are committed to delivering a world-class terminal, creating jobs for labor and the local community, and driving minority/women-owned business enterprise participation across the project. The ADR program creates a safer and more equitable system with implications far beyond New York.”
Recognizing the value ADR could bring to the workers and the project, the New Terminal One, the Building Trades, Ullico Casualty Group, and NFP partnered to craft an ADR program that is a cornerstone of an owner-controlled insurance program for the project’s construction. Under a project labor agreement, the New Terminal One expects to generate 6,000 construction jobs and a total of 10,000 jobs over the life of the project.
“NFP’s decades-deep expertise in the construction and workers’ compensation space has allowed us to collaborate seamlessly with Ullico Casualty Group to create a coverage solution that is mutually beneficial for union employees and general contractors,” said Henry Lombardi, executive vice president, Property and Casualty, NFP. “By bringing the right people and right resources together, we have empowered the signatory employers to bid more competitively on construction project labor agreements across the five boroughs and delivered a big win for New York City Organized Labor.”
Over the years, insurance costs have put NYC Organized Labor and their signatory employers at a disadvantage when competing for high-profile construction projects. The Ullico Casualty Group/NFP ADR program redefines the building and construction landscape of NYC by accounting for the unique challenges union members face and turning them into a competitive advantage.
“This program prioritizes union workers first and foremost with the support they need to maintain their livelihoods, benefits and due process when injuries occur,” said Edward Smith, president and CEO of Ullico Inc. “Our program commits to delivering enhanced healthcare for union workers, so they receive the resources they need and return to work without encountering delays or complications common in a traditional claims dispute system.”
A well-run ADR program eliminates common pain points for injured workers within the traditional workers’ compensation system by improving medical care, enhancing benefits and streamlining the claims process. Enhancements are the differential to reduce disputes, litigation and insurance costs, giving union employers and contractors an edge when bidding for work.
“A successfully implemented ADR program protects the interests of building projects in a way that benefits both employers and employees,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York. “We are proud to deliver a program allowing stakeholders to reduce extraneous costs without sacrificing the benefits workers need to support themselves and their families.”
Ullico Casualty Group and NFP are expanding the program into other states that allow workers’ compensation ADR.