July 2014 - Summer Newsletter

   
20 Years

As we begin to gaze at 2014 in a rearview mirror, we are deeply grateful for your business and friendship. We are excited for 2015 and the continued improvements we have on the board to improve our customer’s experience.

Thus far we have had the honor of celebrating our 20th Anniversary milestone with our clients and brokers. We have set aggressive business goals and are on target to exceed those goals and set in motion projects that will expand our services to better serve our customers.
Through the years, we’ve experienced extraordinary growth and change at Paul Hanson Partners, thanks largely to our continued commitment to teamwork with our broker network and our policy of placing the trust of our customers above all else. We are proud that we have successfully reached this key milestone while positioning our organization as one of expert and partner in the transportation industry. We have the knowledge, experience and expertise to bring specialty insurance products to niche markets, and we know the next steps we need to take are simply an extension of what we have been doing successfully since our inception.

I praise each of our employees for making these past years such an exhilarating success, even in turbulent times. I would also like to extend my thanks to our customers and brokers for their unfailing sense of devotion, responsibility, guidance and support, without which our flame would surely have flickered out long ago.

It is our mission to close this year knowing we have provided a balanced and secure partnership for you and your business.

Paul Hanson Partners has heard your feedback and requests and have new topic points in our newsletter : Issues that Matter (focusing on regulations that impact the transportation industry), Claims Corner, and Underwriting Corner.


We are focusing on your commonly asked questions as well as daily topics that drive your business decisions.

 

We hope this is useful information!

With sincerest thanks,

Lisa Paul

 

Lisa Paul
     
 

THE FMCSA HAS NEW PROPOSED FINANCIAL RESPONSIBILITY RULES FOR COMMERCIAL CARRIERS

Many studies and statistics support that the current limits for commercial carriers do not adequately cover catastrophic crashes. Increased medical costs are the primary factor impacting claims and the potential need for higher limits.  The FMCSA is using the data generated by the research underway and may soon be recommending higher limits.  One study has recommended raising the limit to as high as $10M.

A proposal that could eventually lead to higher insurance requirements for trucking companies is close to publication. An advanced notice of the proposal is under review by the White House Office of Management and Budget and can be expected to show up in the Federal Register this year.

Acting under instructions from Congress, the Federal Motor Carrier Safety Administration plans to update insurance requirements that have been in place for almost 30 years. We found this write up and summary on the FMCSA’s website.

 


 
     


     
 

HOW DOES UNDERWRITING EVALUATE A RISK?
Have you ever wondered why insurance companies require an annual financial statement? What are they looking for and how does this information fit?   

The primary reasons that financials are an integral part of the underwriting process is to identify and red flag accounts with a poor financial outlook. Accounts with a poor financial outlook are more likely:

  • To be a consistent late payment and overall collection issue.
  • To not have enough funds to maintain equipment in safe working order leading to a greater chance for claims.
  • To provide an unsafe working environment due to an inability to repair or improve building conditions.
  • To provide inadequate salaries and not be able to hire the best available employees.
  • To be unable to pay future claim deductibles.
  • To have a higher potential for morale hazard – fraudulent claims.

 

Our underwriting department looks at two areas when evaluating a risk’s financial outlook.

  • Dunn & Bradstreet (D&B) Rating. D&B, a privately held company, is the world’s leading source of commercial information providing insight on a business’s current financial position. D&B uses a 1-5 scoring system when evaluating risks. (The number 1 being the best score to the number 5 being the worst.)  For more information go to http://www.dnb.com/
  • Annual Business Financials provided by the Insured.

Our underwriting team evaluates this annual information using three standard financial ratios to determine an insured’s fiscal fitness.

Liquidity Ratio:  Current Assets divided by the Current Liabilities
Equity Ratio:  Total Assets divided by Total Equity
Profitability Percentage:  Net Income divided by Gross Income

The role of the underwriter at Paul Hanson Partners is to review and determine the appropriate classification and coverage for your business. We pride ourselves on our underwriting capabilities and are confident we can evaluate your situation in its entirety.

 
     

 

     
 

Warehouse accidents often involve forklifts. Accidents can be caused by employees who do not use forklifts properly, by forklifts that are defective or by challenges involving adequate maintenance. How do we prevent an accident or claim from occurring?

According to OSHA, there are between 20,000 to 35,000 forklift accidents every year. By being aware of the dangers, looking for potential pitfalls and ensuring proper training, you can take steps to avoid adding to these numbers. OSHA is very clear, “Operating a forklift without training is dangerous and can even be fatal to you or other employees working in the area.”

Most of the injuries and property damage can be linked to these causes:
– Lack of training or improper training of workers who have to operate forklift trucks.
– Lack of enforcement of safety rules—for example, a forklift should never be used to elevate workers standing on the forks.
– Failure to follow safe forklift operating procedures including speed.
– Improper assignment of forklifts and operators.
– Poor maintenance of forklifts.

Workplace design can contribute to forklift accidents. Most of the injuries and property damage can be linked to these causes::
– Narrow aisles
– Crowded, cluttered aisles
– Obstructions at intersections and doors.

Characteristics of the load creating hazards:
– Poorly stacked items piled on the pallet
– Broken or faulty pallets
– Load too heavy
– Load instability
– Load blocking the operator’s vision

Mover’s Choice wants to help you keep your lift truck operators and contents safe. Training, experience and knowledge are necessary to create a safe environment. We have loss control resources on this topic available through the Paul Hanson Safety Portal and LexTrainer. Topics include fulfilling requirements and concerns for forklift, OSHA minimum requirements for forklift training, and Pallet Jack Checklists to name a few.

 
     

 

     
 

Several people have won champagne and continue to help us celebrate! If you’ve missed out, there are still chances to win a case of Domaine Chandon champagne. Please look for our ad and QR code in “Directions Magazine” for another chance.


Please join us in welcoming our newest team members. As our family grows we like to brag about the additions!

Curtis Paul

Curtis Paul
Alisha Martinez

Alisha Martinez
Janet Gates

Janet Gates


 
     
 

 

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Mailing Address: P.O. Box 5990 Napa, CA 94581
Physical Address: 1319 First Street, Napa, CA 94559
Toll Free: (800) 852-1968
Fax: (707) 252-5905

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