Fund Eligibility
Fund Eligibility Participants of the Michigan Cleaning Fund must be a member of the Michigan Cleaners Association or the Midwest Carwash Association. Non-members may receive a proposal from the Fund. Upon joining the Fund, the business would then be required to join the appropriate association. To be eligible, a business must serve in the industries listed and must meet underwriting review based on loss history.
The Fund covers a wide variety of classifications such as:
- Dry Cleaners
- Industrial Linen
- Uniform Laundries
- Car Washes
- Carpet Cleaners
- Janitorial
- Suppliers
Fund Structure
- Fund members pay premiums into the Fund. Premium is calculated based on the payroll and loss experience of the member.
- The Fund invests the premium until it’s needed to pay claims.
- Approximately 25% of premiums goes toward operating expenses and the purchase of excess insurance.
How the Fund Works
The Michigan Cleaning Fund, administered by RPS Regency , is owned by its members and operates similar to an insurance company – providing the same employer protection and paying claims to employees injured on the job. The Fund saves members money by operating with reduced overhead, aggressively managing its claims and through industry-specific loss control efforts. The money that is not used to pay for claims, and any investment income, is returned back to the members over time.
As the Fund ages, members receive profit returns from a number of Fund years. Also, the MI Cleaning Fund is protected from large losses by the purchase of excess loss insurance, further enhancing stability and profitability. Over the Fund’s history, members have received profit returns equal to 50 percent of the premiums paid.
- The remainder of collected premium dedicated to member claims.
- Premium not used to pay Fund expenses or claims is returned back to the members, along with any investment income earned.
History of the Fund
The MILD Self-Insured Workers' Compensation Fund was formed June 1, 1981 as a way to control the long term workers' compensation costs of members of the Michigan Cleaners Association. The Fund grew quickly and by 1986 collected more than $1 million in premium annually. In 2004 the Fund expanded to include eligible members of the Midwest Carwash Association.
In 2010 the MILD Fund Board of Trustees was pleased to announce the change of the Fund’s name to the Michigan Cleaning Fund, which reflects the variety of cleaning industries eligible to participate. Eligible classes of business include: dry cleaning, industrial laundry and uniform, coin-operated laundry, car wash, carpet cleaning, and janitorial cleaning.
As the Michigan Cleaning Fund approaches its 42 year anniversary, it remains the best option for the industry to control workers’ compensation costs. The Fund’s Board of Trustees will continue to find ways to better serve its members in the years ahead.