Captive Insurance Lunch & Learn

We will be hosting a Captive Insurance lunch & learn on Wednesday, March 22 in Baton Rouge, LA. If you think your business could benefit from joining a Captive register today!

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

MSA Indemnity Risk: A Key Driver of Insurance Rates and What You Can Do About It

Master Service Agreements (MSAs) are the “life-blood” for any Oil & Gas Service Contractor. Without the right MSAs, Contractors are without approved-vendor status and miss out on the opportunity to work with top tier Oil & Gas Companies. Therefore, Contractors seek to maximize the quantity of signed, quality MSAs. But what are the risks associated with this quest?

Simply stated, Oil & Gas Companies lower their own insurance premiums and self-insured exposures by systematically pushing risk to Contractors. The primary vehicle for this risk transfer is the indemnity section of an MSA. While a strongly worded MSA accomplishes the risk-reduction goals of the Oil & Gas Company, it is often done so at the expense of the Contractor. Carefully read of the indemnity sections of just one or two of your MSAs and you’ll quickly understand why your insurance premiums are so high.

Fortunately for the Contractor, there are alternatives, and MSAs are negotiable (if you have the right partnerships). Contractor clients of Ross & Yerger receive no-cost MSA review and negotiation services. Our firm has successfully negotiated hundreds of Oil & Gas Company MSAs on behalf of Contractor clients - leading to significant savings in the form of reduced insurance premiums and enhanced overall corporate value.

At Ross & Yerger, we examine each of our clients’ MSAs from 14 different perspectives. These 14 points are the primary drivers of risk and cost for Contractors, so successful negotiation of these points leads to insurance cost and risk reduction.

Does your insurance agent manage the indemnity risk of your MSAs in an effort to reduce your insurance costs and minimize your balance sheet (self-insured) exposure? If not, you’re paying too much for your insurance.

Contact Jacob Haralson (jharalson@rossandyerger.com, 601-944-0961) or Greg Maloney (gmaloney@rossandyerger.com, 601-944-0838) at Ross & Yerger today for a no-obligation assessment of your overall insurance and risk management program.

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Oil & Gas Service Contractors: Gain Market Share with PEC Training at No Cost

With less work around today, contractors have to do more than ever to elevate their company on the preferred vendor list to capture a shrinking pool of jobs.

Contractor clients of Ross & Yerger are able to rise to the top of bid lists by taking advantage of our in house PEC SafelandUSA and SafeGulf training services for all their employees. We provide these services to our clients at no cost other than the cost of the testing materials ($45). Not only does this elevate our contractor clients in the eyes of their customers, it also reduces risk, reduces insurance cost, and maximizes their Risk Management Investment return (RMI).

A contractor’s RMI is defined as the approximate 12% commission paid on every insurance dollar to its insurance agent in exchange for valuable Risk Management services – services that reduce cost and risk.

What are you receiving in return for your RMI dollars?

To schedule an appointment time for your Risk Management ROI analysis, please contact Jacob Haralson at Ross & Yerger at jharalson@rossandyerger.com or 601-944-0961.

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Dedicated Oil & Gas Team Designed to Improve your Risk Management Return on Investment

How Our Dedicated Team of Experts Can Help You Increase Your Risk Management ROI

In a recent newsletter, we talked about how oil and gas (O&G) service companies need to maximize every dollar of revenue they earn by ensuring an appropriate return on all investments. This includes your investment in O&G insurance.

About 12 cents of every dollar spent on O&G insurance premiums is commission. This 12 cents can also be viewed as your investment in risk management. So the question becomes: What kind of risk management return on investment (ROI) are you generating?

A Question Worth Considering

Few O&G service companies have ever thought about this. Worse yet, neither have most providers of O&G insurance. But at Ross & Yerger, we believe that generating a high, quantifiable risk management ROI is the most important service we can provide to our clients.

We do this by providing at no additional cost, a wealth of resources and added value. One of these resources is the expertise of a dedicated team of oilfield risk management specialists.

As a client of Ross & Yerger’s Oil & Gas Services Division, you will work with a dedicated team of eight O&G professionals. They are experts at driving down O&G risk and the costs associated with this risk. Team members’ functions include:

  • Overall stewardship of the account
  • Day-to-day servicing of COIs
  • Contractual risk management analysis
  • Safety and training assistance
  • Claims management

A Stark Contrast

Compare this to most other O&G insurance providers, which provide their clients with an insurance agent and a customer service rep. These employees may or may not specialize in the O&G industry.

In fact, this is one of the greatest frustrations faced by many O&G service companies. It’s not uncommon for them to call their insurance agent with a question, problem or concern that the agent can’t help them with. Oil and gas is a very specialized industry — if an insurer isn’t dedicated to O&G on a full-time basis, it won’t be equipped to provide the highest level of service to its clients.

Our experienced team of O&G specialists is 100% dedicated to oil and gas services — it’s all they do. This enables us to bring a tremendous amount of added value to the relationships with our O&G clients, thus reducing insurance costs and increasing risk management ROI.

To learn more about risk management ROI and how your O&G service company can benefit from this unique approach to risk management, please contact Jacob Haralson today!

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Construction Contracts Legal Seminar Recap - September 28, 2016

On September 28, 2016, Ross & Yerger Insurance, Inc. hosted a seminar to discuss the implications of this law featuring Michael Thompson and Judson Sanders, attorneys at the law firm Taylor, Wellons, Politz & Duhe.

The construction industry depends on teamwork. An owner teams with an architect to design a project and a general contractor to execute the project. The general contractor uses subcontractors to carry out the work. At the core of these relationships are contracts specifying what is expected and required from each party.

In 2012, Louisiana created a new wrinkle in this process when it passed R.S. 9:2780.1.

Michael and Judson’s analysis of this new law is that it could add much needed clarity to Louisiana’s prohibition against one party transferring its negligence to another. Also, there’s some precedent on how the law will be interpreted based on the construction industry changes being tacked onto the current Louisiana Oilfield Anti-Indemnity Act, which has been in place for decades.

In general, one party can’t push its liability onto another party unless several conditions are met:

  • The assumed liability is supported by insurance and only up to the required limits of insurance;
  • Any request to be an additional insured requires the party providing additional insured coverage to be partially at fault;
  • The party paying for protection pays the cost of this required insurance.

The established oilfield law requires the party seeking protection provide definitive and conclusive proof it paid the entire cost of this insurance coverage, and the oil & gas insurance market has responded with specific endorsements to provide this proof. We’re still in the early stages of this rule being applied to construction, and are waiting to see if Louisiana courts will interpret the proof of payment requirements for construction contracts the same as they do for oil & gas contracts.

Michael and Judson discussed R.S. 9:2780.1 as an evolving issue that each contractor may choose to address a little differently than the next based on their risk tolerance and specific goals. And, contractors will need both attorneys and insurance agents who are aware of the implications this new law could have on the enforceability of their contracts and who are staying on top of new developments.

Contact information:

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Do You Know Your Risk Management ROI?

PROBABLY NOT, BUT YOU SHOULD: HERE’S WHY

In today’s challenging oilfield environment, Oil & Gas service companies need to maximize every dollar of revenue in order to protect profits and remain viable. This means ensuring that every investment dollar is generating an appropriate, quantifiable return — from oilfield equipment to research and development to employees out in the field and in the office.

One area that many O&G service companies overlook when it comes to gauging return on investment is insurance and the commission dollars allocated to the insurance agent. Many O&G service companies view insurance only as a sunk cost for which they will only see a return if they have a claim. However, this is a very narrow way of looking at insurance – one that severely limits your potential return on this large and important investment.

WHAT IS YOUR RISK MANAGEMENT INVESTMENT?

About 12 cents out of every insurance premium dollar (12%) is allocated to your insurance agent in the form of commissions. Think of these commissions as your Risk Management Investment, or RMI.

So the question is: What are you receiving in return for your RMI? Very few O&G service companies have ever considered this question — much less come up with a satisfactory answer.

Well, it’s time to change the way you think about the role your insurance agency plays in your business. It’s time to demand much more in exchange for those large commission dollars (RMI). This starts with determining your own Risk Management ROI and demanding that your insurance agent show you how the investment of those commission dollars translates in to maximum ROI.

LOOKING AT INSURANCE DIFFERENTLY

At Ross & Yerger, maximizing your Risk Management ROI is at the heart of everything we do. We view insurance for O&G service companies differently than other agencies. For example, our practice is not limited to the simple practice of “quoting” insurance. More importantly, in addition to utilizing our clout in the insurance market, we work with our clients to manage the factors that determine the cost of insurance. When risk levels are lowered as the result of our services, insurance costs fall as well. If the investment of your commission dollars fails to accomplish the goal of significant risk and cost reduction, then it’s time to find a new insurance agency.

In exchange for the commission dollars (RMI) we receive, we produce a high, quantifiable ROI for our clients by providing a wealth of resources and added value at no additional cost. In no particular order, some of these resources include:

  • Dedicated staff of oilfield risk management specialists
  • PEC SafeLand and SafeGulf training services
  • A proprietary Corporate Automobile Safety & Risk Management program
  • Review and Negotiation of MSA indemnity and insurance provisions
  • Cradle-to-Grave contractor management service (ISNet ®*, PEC’s SSQ, PICS, etc.)
  • Written OSHA and Safety program development
  • Online OSHA and Safety training programs
  • OSHA 300 Recordkeeping software
  • Complex Claim advocacy
  • EMOD Management, Verification and Projection

In short, we are investing our commission dollars into these and other resources in order to reduce your insurance costs and increase your Risk Management ROI. This is a different way of looking at insurance: from the perspective of “how can we produce a quantifiable Risk Management ROI for our clients?” rather than “how much commission can we earn?” What is your agent’s ultimate goal?

RAISE YOUR EXPECTATIONS

As an O&G service business, you should expect a Risk Management ROI of well above 100%. Otherwise, your insurance expenditures are just sunk costs for which you are significantly overpaying.

Very few O&G service company owners have any idea what their Risk Management ROI is — and if they did know, they would be very disappointed to learn that it’s probably well below the breakeven point.

At your request, we will provide you with a no-cost, no-obligation Risk Management ROI analysis that will quantify your current Return on your commission dollar Investment. Then we’ll demonstrate how partnering with us and taking advantage of our portfolio of no-cost Risk Management services will significantly boost your Risk Management ROI and decrease future insurance costs, leading to enhanced profitability and elevated standing with your best customers.

To schedule an appointment time for your Risk Management ROI analysis, please contact Jacob Haralson at Ross & Yerger at jharalson@rossandyerger.com or 601-944-0961.

* ISN® and ISNet® are registered trademarks of ISN Software Corporation.

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Benefits of E-Payables

Would you like to generate a return on how you remit your payables? Ross & Yerger represents Comdata’s E-Payables program, an e-payable system that could generate significant income for your business. For example, if you pay $1,000,000 in expenses through the Comdata system, you get $15,000 straight to the bottom line.

Benefits of Electronic Payments
Save Time
Save Time
Reduce Costs
Reduce Costs
Simplify Processes
Simplify Processes
Improve Visibility of Cash Flow and Spend
Improve Visibility of Cash Flow and Spend
Capture Early Payment Discounts
Capture Early Payment Discounts
Greater Spend Control
Greater Spend Control

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Job Opening - Employee Benefits Account Manager Assistant

Summary

The Employee Benefits Account Manager Assistant acts as support within the Employee Benefits Department. The major duties and responsibilities of the position include assisting the Account Manager in the service to the group client at the time of new business placement or at renewal and as required throughout the year. Specific service responsibilities are to develop an ongoing relationship with clients, oversee their coverage program, fulfilling client requests and assisting Account Managers and Producers as needed in disseminating benefit information to potential and existing group clients. The Employee Benefits Account Manager Assistant will train to serve as liaison between the insurance carriers and group clients to ensure timeliness of claim payments, overall benefit plan implementation under the leadership of the Department Manager and Producer.

Major Duties and Responsibilities

  • Receive phone calls and office visitors with requests for assistance on existing coverage and/or new policies. Obtain and process enrollment forms, change forms or benefit summaries as determined by client need.
  • Review existing benefits to determine best coverage alternatives when necessary. Maintain open lines of communication with the Account Manager and Producer regarding alternatives for the group.
  • Communicate renewal terms to client and work with the Account Manager to negotiate the renewal terms with carriers when necessary. Maintain open lines of communication with the Account Manager and Producer during this time.
  • Obtain group premium, enrollment contracts and group coverage agreements when necessary and submit timely to insurance carrier for processing.
  • Maintain own follow-up and suspense file within the Agency Management System on outstanding activity and correspondence. Follow up on all items thoroughly and timely.
  • Maintain group account files in an orderly, up-to-date manner.
  • Facilitate renewals and new business as directed by Department Manager.
  • Maintain group account information in Agency Management System by documenting conversations regarding benefit problems, claim difficulties or carrier options to be evaluated at the time of group renewal.
  • Demonstrate knowledge in rating applications and procedures for all types of group policies. Use web sites to obtain information as necessary to assist clients.
  • Explain coverage and exclusions to clients as necessary.
  • Keep Account Managers and Producers fully informed of important activities or challenges on their accounts.
  • Obtain proposals and generate coverage comparisons for renewal business as required.
  • Perform all actions relating to the public, customers and companies in a manner that will avoid issues involving potential errors and omissions or loss of business.
  • Participate in seminars and other training opportunities for knowledge and skill development, and maintain required licenses for current position.
  • Share knowledge that is useful to the department.
  • Perform other duties as requested by Department Manager.
  • Demonstrate understanding of employee benefit programs and coverage and ability to communicate effectively with potential and existing clients (and their employees) regarding these benefit programs.

Requirements

  • 4 year College degree preferred. Life & Health License required within 6 months of employment and satisfactory employment record.
  • Minimum two years’ experience in employee benefits, customer service or similar position with underwriting and/or health insurance background
  • Must be a self-starter, able to self-manage workload to ensure group accounts are satisfied with Ross & Yerger and their insurance carrier(s).
  • Must be detail oriented, charismatic, professional, and eager to learn and become an Account Manager. Ability to work in a fast-paced, multiple tasking and deadline sensitive environment.
  • Proficiency in both verbal and written forms of communication. Basic computer/data entry skills (agency management, word processing, and spreadsheet analysis) preferred and above average mathematical skills also required.
  • Maintain and provide excellent customer service to new and existing groups / clients at all times.

Please email resume to syates@rossandyerger.com.

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Job Opening - Employee Benefits Account Manager

Summary

The Employee Benefits Account Manager performs the major duties and responsibilities of the position which includes service to the group client at the time of new business placement or at renewal and as required throughout the year. Specific service responsibilities are fulfilling the group / client requests and assisting producers as needed in disseminating benefit information to potential and existing group clients. The Employee Benefits Account Manager will serve as liaison between the insurance carriers and group clients to ensure timeliness of claim payments, overall benefit plan implementation under the leadership of the Department Manager and Producer.

Major Duties and Responsibilities

  • Receive phone calls and office visitors with requests for assistance on existing coverage and/or new policies. Obtain and process enrollment forms, change forms or benefit summaries as determined by client need.
  • Review existing benefits to determine best coverage alternatives when necessary. Maintain open lines of communication with Producer regarding alternatives for the group.
  • Communicate renewal terms to client and negotiate the renewal terms with carrier when necessary. Maintain open lines of communication with Producer during this time.
  • Obtain group premium, enrollment contracts and group coverage agreements when necessary and submit timely to insurance carrier for processing.
  • Maintain own follow-up and suspense file within the Agency Management System on outstanding activity and correspondence. Follow up on all items thoroughly and timely.
  • Maintain group account files in an orderly, up-to-date manner.
  • Facilitate renewals and new business as directed by Department Manager.
  • Maintain group account information in Agency Management System by documenting conversations regarding benefit problems, claim difficulties or carrier options to be evaluated at the time of group renewal.
  • Demonstrate knowledge in rating applications and procedures for all types of group policies. Use web sites to obtain information as necessary to assist clients.
  • Explain coverage and exclusions to clients as necessary.
  • Keep producers fully informed of important activities or challenges on their accounts.
  • Obtain proposals and generate coverage comparisons for renewal business as required.
  • Perform all actions relating to the public, customers and companies in a manner that will avoid issues involving potential errors and omissions or loss of business.
  • Participate in seminars and other training opportunities for knowledge and skill development, and maintain required licenses for current position.
  • Provide training to others as requested. Share knowledge that is useful to the department.
  • Perform other duties as requested by Department Manager.

Requirements

  • Must be a self-starter, able to self-manage workload to ensure group accounts are satisfied with Ross & Yerger and their insurance carrier(s).
  • Proficiency in both verbal and written forms of communication. Basic computer/data entry skills (agency management, word processing, and spreadsheet analysis) preferred and above average mathematical skills also required.
  • Demonstrate understanding of employee benefit programs and coverage and ability to communicate effectively with potential and existing clients (and their employees) regarding these benefit programs.
  • Minimum two years experience in employee benefits, customer service or similar position with underwriting and/or health insurance background.
  • 4 year College degree preferred. Life & Health License required within 6 months of employment and satisfactory employment record.
  • Ability to work in a fast-paced, multiple tasking and deadline sensitive environment.
  • Maintain and provide excellent customer service to new and existing groups / clients at all times.

Please email resume to syates@rossandyerger.com.

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Poetry Has Its Perks

Free shakes from Super Shakes
Free shakes from Super Shakes

Big thanks to Super Shakes for choosing Ross & Yerger as the “Healthiest Workplace of the Week” and bringing us free yummy shakes!

Below is the poem about our wellness program, Pulse, that R&Y’s own Kelsey Purvis submitted to Y101 for our chance to win free shakes. We had no idea we had such an awesome poet on staff!!


Pulse:

Pulse is the name of our wellness program.
There aren’t enough healthy tips to cram-
Between Healthy You Visits and the Health Fair,
There are plenty of fruit and veggie recipes to share.

But what makes us different from the rest?
Let’s put that to the test.
Does your company have a time slot,
An hour a week for exercising?- that’s a lot!

And in the summer, once a week
We taste Fruit and Veggies that are on fleek.
We call this activity the Food Kaleidoscope
To make heathier life changes, we sure do hope.

And intermural sports is a must
Especially when every other team is left in our dust.
2015 JSU Intermural Kickball champs
Because we eat healthy, we have no cramps.

R&Y sponsors walks and runs
To shape up all of our buns.
To show we aren’t all talk,
You should join us all at the annual JDRF Walk.

An exercise journal is what we keep,
But only benefits are what we reap.
And at the end of the year,
We are rewarded with some pretty cool gear.

The quarterly challenge is always a blast
“Win it by the minute” got our hearts beating fast.
The winning team had a nice lunch at Char
For showing the others how to set the bar.

In our office is a marvelous gym.
Running short on time is not our problem.
With treadmills, ellipticals, and punch bags galore
It’s pretty cool that working out isn’t a chore.

You see, Heathier Living is what we strive to promote
So please give Ross & Yerger the vote.
We all love an afternoon treat.
And yummy Super Shakes, you just can’t beat.

Our office is located at 200 S. Lamar
Good thing that isn’t too far.
We can’t wait to see you with shakes in hand
Now please go play on the radio a good band.

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY

Construction Contract Pitfalls

The reality of the construction industry is that contractors have to sign contracts to work. And they usually don’t have much in the way of negotiating leverage. This can put contractors into a financially dangerous risk management position if their insurance agents aren’t looking at their contracts and comparing them against their insurance policies.

One of our insureds (the Subcontractor) had the wording paraphrased below contained in one of their construction agreements:

Subcontractor will defend, indemnify, and save harmless Contractor from any and all claims which are caused in whole or in part, which arise from or occur in connection with work undertaken or to be performed by the Subcontractor, or which arise from or occur in connection with any other act or omission relating to the Subcontractor.

The key piece of this indemnity that could cause trouble is “which arise from or occur in connection with work undertaken or to be performed by the Subcontractor.” This statement makes the subcontractor responsible for all claims that are connected to its work; it doesn’t require that the subcontractor’s negligence or actions contribute to the loss. The mere presence of the subcontractor at a jobsite makes anything that happens to one of its employees “in connection” with the subcontractor’s work.

In our example scenario Capitol Plumbing has been hired by ABC General Contracting for a new office building. One morning Capitol Plumbing’s employee Joe is getting his equipment ready at the jobsite and the sheetrock supplier hired by ABC backs his truck over Joe causing serious injuries that require tens of thousands of dollars’ worth of surgeries and a lot of lost work time for Joe.

Of course Joe has his medical bills taken care of by Capitol’s workers’ compensation policy along with a portion of his lost wages. But Joe wants the rest of his lost wages and he wants someone to pay him for his suffering now that he can’t go out on the Reservoir every weekend in his boat and enjoy fishing the way he used to. So Joe sues ABC General Contracting for negligently hiring a sheetrock contractor with incompetent drivers who don’t know how to follow proper safety protocols at the jobsite.

As soon as ABC gets this claim, they pull the contract they have with Capitol and remind them that they agreed to defend and indemnify ABC from any claims that occurred in connection with Capitol’s work for ABC. Joe would not have been at the jobsite if it weren’t for Capitol’s work. So the claim bounces back to Capitol who is contractually obligated to take it. An unendorsed general liability policy would cover this as a contractual liability claim because Capitol’s contract with ABC is an “insured contract” and the workers’ compensation and employers’ liability exclusions wouldn’t apply because of an exception for this specific circumstance (an action over claim). Unfortunately, Capitol’s general liability carrier had just added an endorsement stating that insured contract coverage didn’t apply unless Capitol’s negligence was at least partially responsible for the loss. They also had an additional insured endorsement that required Capitol’s partial negligence to kick in. So Capitol has to take on this claim without any insurance to help pay for it.

At the end of the day, Capitol could have avoided this financial exposure by sending its contract to its insurance agent. We would have recommended that they add a statement to the indemnity explicitly exempting Capitol Plumbing for any liability associated with ABC’s (or its other subcontractors’) sole negligence. Most contractors will agree to this if it is negotiated in advance and it could have saved everyone in this scenario a lot of grief.

CONTACT AN advisor TO LEARN HOW WE CAN CREATE VALUE FOR YOU TODAY