California Restaurant Mutual Benefit Corp. raised $100 million in capital over the past decade from its members and through fiscal controls.
CRMBC is a California self-insured group that provides workers’ compensation coverage for the restaurant, hospitality and food service industries. Its members share in surpluses or shortfalls of funding to cover claims and operating costs.
In the early years of CRMBC, mismanagement by third-party service providers resulted in the group undercharging itself and incurring an $80 million deficit. The deficit was discovered during a regulatory audit by the State of California Office of Self-Insurance Plans, and the group’s board undertook a remediation plan to correct the deficit.
In 2023, accompanying the recently announced new leadership of CRMBC, The PATH Alliance was appointed as the group’s new administrator in May. Moss Adams LLP was appointed the group’s independent auditor.
In 2022, CRMBC reported member equity of nearly $20 million.
Topics California Employee Benefits
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