Dr. Bruce Baker
Human Capital Advisor
Once upon a time, a young man started a business selling insulation to chemical plants. The young man loved talking to his clients and regularly dropped by to check on them personally. He was a good salesman. He always kept his word and did good work at a fair price. Therefore, his business grew rapidly. He hired workers, opened lines of credit, and rented office space. In less than ten years, his revenue was measured in the millions. To most, it seemed that his life was great. Like many young men, he had a young bride and young children. While she was a patient and loving wife, she began to grow tired of his long hours and grumpy moods. He regularly missed important family events and seldom came home in time for dinner. He felt guilty for causing her anguish.
Additionally, the young CEO had started experiencing health problems. He never had time to eat properly or exercise. He was frustrated by almost everything about his company. He no longer had time to spend with clients and check on jobs.
The business was not fun. Not anymore. Now he had meetings. Meetings about personnel issues. Meetings with accountants. Meetings with lawyers. He did not like meetings. He wanted to be a salesman and he hardly ever had the chance to meet with clients anymore. He was close to burnout. He was beginning to consider getting out of his business entirely.
In the midst of his pain, he met with a friend after work. Turns out his friend had experienced many of the same problems and frustrations. “What did you do?” he asked. “I hired a coach.” The executive, not so young anymore, was thunderstruck. “A coach!?!” He had never heard of such a thing.
Fast forward twelve months and our executive is beaming. He has filled his toolbox with resources to manage his business more productively. He spends the majority of his time on activities that bring the biggest return for his company. He has trained a trusted second-in-command that is skilled at tasks our businessman despised. His wife is happier; his health is better. Life is moving in the direction of great again.
If you find yourself frustrated with your lack of productivity, review our whitepaper on Executive Productivity to learn more about what we are doing internally and how you can increase your own productivity.
Greg Shinsky, CSP
Director of Risk Control
Most employers know that OSHA 300A summary logs are required to be posted in the workplace today, February 1st, and remain posted until April 30th. What business owners may not know is that now is the time when OSHA is developing their annual hit list.
An OSHA hit list contains companies that are targeted for comprehensive inspections. Companies on the hit list face a high probability of an on-site OSHA inspection in the current year.
How does a company get on the list? OSHA collects data from the previous year focusing on days away from work or days of restricted work due to injury or illness. Anything over the OSHA threshold automatically triggers inclusion on the hit list.
If you fear your 2011 injuries will put your company on the hit list, now is the time to prepare. The Gibraltar Group can assist you in conducting a mock inspection that will prepare you for when the OSHA inspectors arrive and help you improve your safety record.
In a few weeks, we will be publishing a white paper on how to calculate your DART rate, prepare for an OSHA inspection, and involve your entire team in creating a safer work environment. To make sure you are notified of the white paper, click here to subscribe to our feed.
Michael Breler
Client Advocate
Most organizations today depend on external vendors to provide goods and services necessary to run daily operations. Apart from the apparent cost in engaging in these relationships, it is also important to understand that vendors can add complexity to an organization’s overall risk. Failure to manage this risk can further add to the cost factor of the vendor relationship. In some cases the additional cost can be severe enough to leave you in financial distress or even put you out of business.
Fortunately, there are some simple and cost-effective strategies for managing vendor risk. The most important one, perhaps, involves the development of contractual agreements that are designed to transfer high risk and high frequency exposures to your vendors. This risk management strategy, also known as contractual risk transfer, commonly provides drafting indemnification, hold harmless, and defense agreements. Additionally, it ensures appropriate coverage, limits, and endorsements are being requested from each specific vendor. A vendor contract alone, however, is not sufficient to mitigate your risk for litigation and financial loss. Without a systematic process for requesting and tracking incoming certificates there is no control measure in place to ensure that each vendor is complying with the insurance requirements outlined in the agreement.
Consider the following case study:
Problem
A regional wholesaler utilized a temporary staffing agency to supply additional labor. One of the temporary employees while performing duties for the company was critically injured resulting in a $1.5 million settlement. The wholesaler was deemed liable. The staffing agency’s workers compensation carrier indemnified the injured employee as due, but turned around and
subrogated against the wholesaler’s general liability carrier. Because the company had failed to request and obtain a waiver of subrogation endorsement from the staffing agency, the staffing agency’s workers compensation carrier was able to recover its payments to the injured employee. To add further insult, the wholesaler’s carrier ended up non-renewing their insurance and the company was now stuck with a catastrophic claim on their loss history making them subject to substantially higher insurance rates.
Solution
This case may have been prevented if the wholesaler had required the staffing agency to provide a waiver of subrogation in their favor. This clause could have been incorporated into the contract and verified by requesting and obtaining a compliant certificate of insurance from the staffing agency.
In today’s litigious business environment, failure to effectively manage the risks associated with vendors is not only widespread but also extremely hazardous to the sustainability and profitability of any organization. The implementation of carefully drafted contractual agreements and a comprehensive certificate-tracking program can be an extremely cost-effective solution. It minimizes potential liability exposures and helps you mitigate the risks of litigation, financial loss, business interruptions and higher insurance rates that ultimately could endanger the health of your organization.
Brandt D. Beal
Chief Executive Officer
At Gibraltar, we expect our team members to give 110% in every area of their job by taking ownership over their work and producing results. We work hard to create positive outcomes for our clients. In doing so, our team members must demonstrate a high level of business acumen, drive, and dedication. This past month we embarked on a cultural revolution that I believe will further instill a sense of ownership in each of our team members.
Results-Based Work Environment
At the end of the day, our clients, business partners, employees and I desire that our efforts at The Gibraltar Group create positive results. Because we have many Generation Ys (a.k.a. Millennials) on our team, we saw the opportunity to change our internal policies and benefits to better motivate our Millennial team members and align more closely with our company mission and values. After a few lengthy discussions with our human resources, finance, and operations leadership, we made some significant changes. We decided to start treating our employees like owners since we expected them to act like owners.
Gibraltar Compensation – The 7.8.9 Plan
I thought it was time to create and implement a compensation structure that better rewarded our employees for the hard work they do. Our 7.8.9 Plan is a simple, but powerful, formula that 
rewards our team members monthly. As an owner, I receive a pay raise through growth and profitability, so, why not implement the same structure for our employees? We want to put our employees in control of their financial future. The 7.8.9 Plan, combined with our annual profitability bonus, creates a compensation program that Rocks!
“No Limit” Vacation Policy
We have never micro-managed the hours of our team members. They have diligently worked the hours required to get the job done. They regularly answered emails and voicemails late at night and even while on vacation; however, we micro-managed their vacation. This just didn’t seem right, so I decided to get rid of our vacation policy altogether, allowing our employees to take the time they need while still creating positive results. It’s ok if our employees need a day to recharge; it would also be ok if they wanted to plan an epic three-week tour of Europe. We only have one rule in our vacation policy, which is really more like a responsibility statement:
“In everything you do, we ask that you act with The Gibraltar Group’s, your colleagues', and our clients' best interest at heart.”
Telecommuting Policy
My creative juices are hard at work late at night which is why I am notorious for sending emails in the wee hours of the morning. I also know that I am sometimes able to work more efficiently and effectively when I am away from my office and its distractions. We implemented a policy allowing our employees to work off-site when needed, as long as their availability to colleagues and clients is unaffected. The next time you speak with your Gibraltar representative he or she may be at the local coffee shop enjoying a latte while securely connected to Gibraltar’s computers and telephones.
At the Gibraltar Group, we have experienced 100% growth almost every year since our inception. We realize that our team members’ talents, commitment, and hard work are the reasons for our continued success. Our employees are important to us. Our goal is to create an environment where career fulfillment and personal growth are normal outcomes. In that environment, financial rewards occur naturally.
Download the white paper below to learn more about these and other human capital strategies that can help you recruit and retain quality employees.
Greg Shinsky
Director of Risk Control
On my first official business trip after joining The Gibraltar Group I found it odd that our CEO, Brandt Beal, wasn't allowed to drive and in fact didn't even resist when the car keys were taken from his hands. It was obvious that this was a customary procedure. Not long after that, Brandt and I were on a trip together and after a few minutes with him behind the wheel, I realized then the reason he wasn't allowed to drive. Brandt, the ultimate multi tasker, attempted to carry on a conversation with me, a conversation via text, return emails, manipulate the radio, retrieve files on his iPad and drive all at the same time. I am confident that there are many truck drivers that have become just as proficient at multitasking while behind the wheel.
In order to prevent auto accidents that often have catastrophic results, professional drivers must be alert and pay close attention to the ever changing landscape. Research from the Department of Transportation shows that using a hand-held cell phone while driving requires a commercial driver to take several risky steps beyond what is required for using a hands-free mobile phone. Drivers reaching for an object, such as a cell phone, are three times more likely to be involved in a crash or other safety-critical event. Dialing a hand-held cell phone makes it six times more likely that drivers will be involved in a crash or other safety-critical event.
On January 3rd, the Federal Motor Carrier Safety Administration (FMCSA) implemented regulations designed to reduce distracted driving among America's commercial vehicle operators. Reducing driver distractions is an obvious priority of the Department of Transportation and should be a priority for your company as well. Remember that your professional drivers represent your company's brand and balance sheet.
Drivers of CMVs: Restricting the Use of Cellular Phones
(49 CFR Parts 383, 384, 390, 391, and 392)
Summary:
The new rule prohibits the use of hand-held mobile telephones by drivers of commercial motor vehicles. Drivers are banned from holding a mobile telephone to conduct a voice communication, from dialing a mobile telephone by pressing more than a single button, or reaching for a mobile phone in an unacceptable and unsafe manner. The ruling does specify that drivers can use a compliant mobile device as long as the fore mentioned restrictions are followed. This ban of cellular phone use will affect almost 8.5 million truck drivers and almost one million bus drivers across the nation.
Penalties:
Drivers of commercial motor vehicles who violate this rule are subject to a fine of $2,750 per incident and possible license disqualification for multiple offenses.
This new rule doesn't just apply to drivers. A whopping $11,000 maximum fine is administered to motor carriers who "allow drivers to use hand-held cell phones while driving."
Click Here for a Detailed Description of FMCSA's New Rule
Compliant Solutions:
- Speaker Phone With Voice Command
- Bluetooth Headset With Voice Command
The bottom line is that this seemingly simple rule is actually quite complex and like similar state laws is inherently difficult to enforce as drivers are not inclined to put their phones down just because they are told to. Let's face it, people are addicted to their phone and even more addicted to smartphones. Without tools to actively enforce compliance with cell phone use regulations, the FMCSA and the entire trucking industry are likely tempering their expectations as to how many drivers will voluntarily comply. The consequences and penalties for non compliance are real and expensive as are the positive results that this rule will produce if professional drivers comply. Click below or contact us for a detailed driver policy and notifications about the new FMCSA cell phone ban ruling.
SAMPLE CELL PHONE USE POLICY
Click Here for a Cell Phone Use Policy Reflecting Regulation Changes
Pepper Grey
Vice President of Risk Management
Does it appear that the claim is dragging on and on, and you can't do anything to put an end to it or get the claim closed? Is the employee doing things that are inconsistent with the type of injury he or she reported? Can the employee do some of the job duties, if not all, due to actions you or others have observed him or her doing during recreational time? These are not uncommon issues plaguing the workers compensation system, and there are steps you can take to move the claim along and push for resolution.
A competent and actively involved insurance broker, risk manager, or risk advisor can be a great asset in helping implement and communicate a return to work program. They can become an important liaison between the adjuster, employer, medical provider and employee ensuring that the medical costs are reasonable, necessary and related and that all involved parties are actively working towards getting the employee back to work. This type of advocacy service is something The Gibraltar Group provides as we believe that this service is a necessary component to claim cost reduction.
In my experience, companies that create and implement effective return to work strategies can reduce the costs associated with occupational injures by over 70%. You can take control, and we are here to help.
Download our whitepaper to learn more about effective return to work programs and other strategies to minimize workers' compensation costs.
C.J. Baker
Risk Advisor
I recently purchased a new set of golf clubs. After going to a demonstration day and marveling at their increased complexity and customization I decided what I wanted to purchase. Ever the shopper I called several local stores and told them my story. I was very up front about the fact that cost was my main consideration and whoever would work with me on the price tag would get my business.
One shop owner had a unique response. “These clubs are getting fairly complicated but I think I know what works. I wouldn’t feel comfortable selling you a club that was fit by someone else.” He got my business because wanting the right clubs is why I started shopping in the first place and the fact that he was willing to turn my business away rather than compromise his standards gave me a lot of confidence.
We employ a similar strategy when it comes to providing quotes. We simply won’t try to arrange insurance terms without conducting a thorough risk assessment through our RiskIMPACTTM process. If there are dangers to buying the wrong golf club, is insurance not significantly more complex and high stakes.
Business owners can’t be expected to understand all the risks in their business nor can they check the work of insurance agents. They can, however, find a partner that will assess risk from top to bottom and design a holistic risk management plan that will work.
Brandt Beal
Chief Executive Officer
Risk, Estate Planning & Tax Strategies addressed by an 831(b) Micro Captive
Successful business owners are continuously exposed to complex risk and tax issues requiring strategic plans to adequately manage and mitigate the associated high costs. I know that I (and every other business owner I know) am continuously on the hunt for tax liability reduction strategies. We love Uncle Sam but want him in our pockets as little as possible. As a risk advisor by profession, I welcome the opportunity to transfer and finance enterprise type risks that are typically uninsurable in the traditional insurance marketplace. What if you could easily start insurance companies to insure these financially crippling risks like the loss of an operating license, restricting environmental regulations or bad publicity?
Well, you can and strategically reduce your tax liability at the same time. An 831(b) captive arrangement allows an individual or entity to form a micro captive and claim the IRS code 831(b) that waives tax liability on the first $1,200,000 of annual premiums. So, the business you own can insure typically uninsurable risks with tax deductible insurance premiums paid to a privately held insurance company that has zero tax liability on the first $1,200,000 in annual premium it collects.
It may sound too good to be true but an 831(b) captive insurance arrangement can do just that, creating profitable outcomes around tax, succession planning and advanced risk management. Download our whitepaper to learn more about 831(b) captive arrangements and how they may benefit you and your business.
Brandt Beal
Chief Executive Officer
From the beginning we have believed that traditional risk and insurance approaches have a duck-and-cover, hope-for-the-best and protect-against-the-worst mindset rather than a strategic, proactive mindset. We understand that progressive and innovative companies want to align with a like-minded partner that helps address the safety, sustainability and profitability of their company, who delivers more than an insurance policy and reactive services.
Over the last six years, we have helped companies create positive results by defining the true cost of risk and through valuable risk management services such as loss control, claims management and human resource compliance.
In our ever-changing environment, the risks companies face are more complex, severe, and detrimental than ever before. It is this reality coupled with listening to the concerns of business owners that has influenced our methods in the past and is formulating the evolution of The Gibraltar Group, I'm excited to unveil Gibraltar 2.0.
In the last year, we have sharpened resources, hired risk experts and built proprietary programming to holistically address the risks that threaten the safety, sustainability and profitability of companies. We believe Gibraltar 2.0 will be a resource business owners’ need to challenge the status quo and maximize results.
What can you expect from 2.0?
- Comprehensive Risk Assessment Process
- Proprietary Programming Around Business, Strategic & Hazard Risks
- Comprehensive and Competitive Insurance Programs
- Unconventional Wisdom Through Thought Leadership
- Employee Benefits
- Advisory Solutions focusing on safety, sustainability and productivity.
- Quantifiable Results
We will continue to assist clients in placing insurance products and delivering valuable risk management services as we have in the past, capitalizing on a broader set of solutions to better manage your risks. The Gibraltar Group’s sole responsibility is to provide positive outcomes for our clients.
We look forward to having dialogue with you about Gibraltar 2.0 and how we can help your organization achieve positive outcomes even better then before.