PLM Monthly Highlights series for insurance producers and brokers – our newsletter to keep informed on news and updates from Pennsylvania Lumbermens Mutual.
Working with a wood industry-related client? Send your applications to: NewBiz@plmins.com
COMMERCIAL AUTO CLAIMS – Rising Costs in the Lumber Industry
When it comes to Commercial Auto, every broker knows the insurance industry is going through some complicated times – with high loss ratios and even higher litigation costs.
Across the lumber industry, PLM is seeing higher frequency accidents and claims. The rising cost of these claims is often driven by social inflation – when insurers’ claims costs are increasing above general economic inflation. This is generally thought to be due to a trend in increasing litigation costs brought by plaintiffs..
Not only that, but The National Safety Council reported that in 2021, there was an 18% increase in fatal accidents from 2020 and a 49% increase over the last decade with 5,700 large trucks involved in fatal accidents. This increase in fatal accidents could be due to several reasons, including the onset of less experienced drivers into the workforce – a problem greatly affecting lumber businesses.
In a recent LBM Journal article with PLM, you can learn more about how can you best help your clients to take control of their fleet safety. Here are some ways your clients can mitigate their risk level, by taking a proactive, companywide approach to embrace some of these best practices.
Commercial Auto Best Practices:
- Evaluate your driver safety program – evaluated annually, this helps make sure information is up-to-date and helps businesses search for gaps in driver understanding; should include safety policies, expectations, drug/alcohol policy and more
- Properly screen employees – before hiring is finalized, drivers should be screened, including driving records for accident history or DUI, cohesive background checks, truck driving knowledge, etc. – and should consider continuous MVR monitoring for live reports of safety violations
- Conduct training and require continued education – outside of their CDL training, drivers should complete training specific to their lumber operation to stay ahead of industry hazards
- Leverage technology – telematics help confirm training is being followed by supplying real-time data about driver behaviors to see where individuals can also improve and also assist in court cases when trying to assess liability
Read more in our Commercial Auto Loss Control Guides. These are not simple problems to solve for the insurance industry. By helping your lumber and building material dealer clients prioritize safety, they will be in a better position to withstand the unexpected. Working with PLM, you can help build out a more comprehensive driver safety program with a partner that knows their business.
GREEN TREE RISK PARTNERS – Innovative Insurance Solutions
This month
, we announced the updated name and rebrand for PLM’s in-house brokerage from ABM to Green Tree Risk Partners!
As always, GTRP operates as a wholesale brokerage and program business specialist serving the wood/forest products, logging, and building materials industries by providing Workers’ Compensation, Property, Casualty, Commercial Auto, Umbrella, and other coverages through partner carriers.
Need help finding the right home for tough risks?
Not sure if PLM and GTRP are right for your client’s business needs? Looking to evaluate their insurance program? Want to see what can compete with the state fund? Do you need Workers’ Compensation or another coverage to protect your clients? Reach out today!
- Complete Protection – From Workers’ Comp to Commercial Auto to E&S to our Logging Program, make your client’s insurance program complete
- No Contracts Required – As an open-brokerage market, we work with any licensed insurance producer without volume commitments, appointments or contracts, helping you keep unique risks with the right carrier
- Everything in One Location – Your time is important, just like helping your client keep their operation open for business; work with GTRP and PLM through one submission process and over 125 years of history
Why “Green Tree”?
When an early US carrier stopped insuring properties with shade trees, some policyholders joined together in 1784 to solve this problem through what became known as The Green Tree.
As the original Green Tree sought to help solve a particular insurance issue, so too does Green Tree Risk Partners by being focused on the insurance needs of the wood and building materials industries. By offering innovative solutions to complex or particular insurance requirements, GTRP remains your tough partner for a strong industry – just as with PLM.
Angelo Ganguzza, GTRP VP & General Manager
LOSS CONTROL – Safer Storage for Fire Safety
In recent news, some of you may have heard about the I-95 Major Highway Collapse in Philadelphia where a tanker truck hauling gasoline crashed and burst into flames leading to the weakened overpass falling down. While not tied directly to the lumber industry, this tragic accident recalls the importance of our clients and potential clients to be mindful of where they keep their stock and also the quality of their housekeeping to help best prevent fire losses.
While not always the case for our more rural insureds, those in metropolitan areas should be aware that losses that also affect public property like major highways can lead to major fines other issues from State DOT and other governing bodies.
Some Tips for Better Fire Safety:
- Storage Locations – keeping stock and finished products away from buildings or equipment and out from under overpasses help mitigate damage levels in the event of a fire
- Smoking Controls – having a dedicated smoking area and strict policy helps keep any unknown smoldering as an ignition source to a minimum
- Housekeeping Checklist – consistent and thorough housekeeping is important for combustible dust that accumulates on surfaces can cause a deflagration, other fires, or an explosion and to keep materials and buildings intact
Download our Loss Control Guides for you and your client | Interested to learn more? Visit our Loss Control Center today.
Recent Wins
Wondering about new business opportunities in your own neighborhood? Here are some examples of accounts successfully written by PLM or with WC placed through Green Tree Risk Partners (GTRP).
PLM
Building Material Dealer – NY: $19,000
Wood Crate/Box Mfg. – VA: $3,000
Custom Cabinet Mfg. – SC: $4,300
Wood Furniture Mfg. – NJ: $13,000
Lumberyard – NC: $18,000
Lumber Distributor – PA: $4,800
Architectural Millwork – KY: $50,000
Building Material Dealer – TX: $38,000
Custom Cabinet Mfg. – OH: $14,500
Wood Furniture Mfg. – AL: $100,000
Lumberyard – IN: $4,000
Hardware Store – MS: $12,000
Pallet Mfg. – IL: $130,000
Wood Display Mfg. – CA: $67,000
Building Material Dealer – OR: $50,000
Hardware Store – OK: $5,000
Custom Cabinet Mfg. – ID: $9,000
Hardware Store – NE: $3,300
GTRP
Wood Furniture Mfg. – SC: $1,000
Reclaimed Floor Mfg. – CT: $2,100
Custom Cabinet Mfg. – FL: $5,500
Architectural Millwork – MA: $2,100
Building Material Dealer – NY: $9,600
Sawmill – NC: $6,000
Building Material Dealer: TX: $2,000
Lumberyard – MS: $50,000
Wood Barrel Mfg. – AL: $3,700
Sawmill – TN: $37,400
Hardware Store – LA: $13,000
Architectural Millwork – TX: $21,000
Building Material Dealer – KS: $2,800
Lumberyard – CA: $9,500
Custom Cabinet Mfg. – MO: $4,300
Architectural Millwork – CO: $22,000
Wood Moulding Mfg. – AZ: $5,200
Hardware Store – SD: $2,000
Upcoming Events
Find PLM and GTRP at these upcoming insurance conventions and trade show events:
- 06/18 – IIABL – Convention – Miramar Beach, FL
- 06/20 – AWIA – Annual Convention – Sheridan, WY
- 06/21 – IIAT – INSURCON – San Antonio, TX
- 06/25 – IIAV – Annual Convention – Virginia Beach, VA
- 07/12 – LAAIA – Annual Convention – Hollywood, FL
- 07/19 – MAIA – MAC Summit – Osage Beach, MO
- 07/22 – PIA LA – Annual Convention – Point Clear, AL
- 07/26 – PIA VA/DC – Trade Fair – Virginia Beach, VA
- 07/27 – AIIA – Young Agents Conf. – Pensacola Beach, FL
