Builders Insurance Thanks Members for Great Year.

Recession, Construction Slowdown Do Not Dim Outlook of One of Nevada's Largest Workers' Comp Carriers

LAS VEGAS -- Builders Insurance Company - one of Nevada's largest workers' comp insurance providers - announced strong financial stability and sustained profitability in the face of the most significant economic downturn in the modern era at their just-completed Appreciation Luncheon for insureds.

More than 800 area construction industry contractors and subcontractors are represented by Builders Insurance Company, according to President Tom Wheeler. Since its inception, Builders Insurance has grown from insuring 11 companies and $750,000 in annual premiums to 800-plus companies and more than $30 million in annual premiums.

"As a company, we faced some challenges last year," Wheeler said. "Our market has always been contractors, and the state of the construction industry affects all of us. Looking around this room, however, I see that although some of you may have smaller companies than you did three years ago, you're making it work. You're still successful. I'm here to tell you that so are we."

Although the company has seen reduced premiums since the construction slowdown began, the number of accident claims and losses have reduced at the same rate. This was attributed to the less severe nature of the on-the-job injuries which occurred in the past year, due largely to Builders Insurance's aggressive on-the-job safety training program.

"We are poised, and ready, for the turnaround that will see your businesses grow again," Wheeler said. "And we are here to help you do that."

Wheeler mentioned that the company has several partnerships with business associations that have helped employers save money. Associated Builders & Contractors Las Vegas and Sierra Chapters have dividend plans with the company, and recently the Nevada Restaurant Association partnered with Builders to offer a new program for restaurant owners.

A Sad Passing

Chairman Ken Cox noted that former President of the company Wayne Harris passed away last year. Cox said that Harris had been with the company since 1996, and oversaw the dynamic growth from a small knot of 11 contractors into one of the largest carriers in the state. Harris had retired just a few months before his death.

Fraud-Busting

S&C Claims Services, the insurer's claims manager, conducts drug screenings related to all covered accidents, and S&C's Dave Oakden announced a significant upward trend in drug impairment as a factor in accidents - 11 percent, up from an average of 8-10 percent during the previous decade. Claims involving drug abuse are denied based on state and federal laws and regulations, saving BIC significant costs.

"We are also seeing a significant increase in attempted workers' comp fraud," Oakden explained, "because workers' comp pays better than unemployment insurance, and a relative few, but economically significant, number of workers facing layoffs are tempted to fake an injury on their way out the door." Working with S&C, Builders has managed to deter fraud and keep claims down, in spite of economic conditions.

Awards

Each year, Builders presents safety awards to member companies which excel at creating safe work environments. This year, Vice President of Safety Jerry Peck presented awards to Sletten Construction - a firm with 300 workers which offers daily safety training - and Fast Plumbing Service, whose safety program is headed up by Cal and Marian Hinebauch. Tom Wheeler and Ken Cox presented the President's Silver State Award to longtime insured FrameCon Incorporated. The award was accepted by FrameCon's Safety Director Allen Haynes and Controller Donna Carlson.

Scholarships

Builders also announced awarding 12 $2,500 scholarships to a dozen students selected by an independent scholarship committee made up of UNLV educators - five of these students are repeat winners, students who have maintained academic excellence while benefiting from Builders' scholarships. Since 2001, Builders has granted $247,000 in scholarships.

These funds are provided by late-fee penalties paid by member companies, and do not come out of premiums or other corporate funds. Eligible students must be the children or grandchildren of owners and employees of businesses covered by Builders Insurance, as well as of employees of Builders, Risk Services and other affiliated businesses.

Scholarship winners are selected based on academic achievement, not need, and include: Jennifer Stewart, Weston Teshima, Jeremy Treichel, Rochelle Davis, Megan Randolph, Cameron Geiger, Brittany Long, Marc Doty, Jace Meier, Antonio Montenegro, Leslie Sanchez and Charles Peterson. These students are studying in the fields of Economics, Finance, Accounting, Business, English, Engineering, Communications, Human Development, Wildlife Conservation, Elementary Education and Business Administration.

About Builders Insurance Company:

BIC offers post accident drug testing, back-to-work programs to save Nevada's construction companies millions in workers' comp costs. Builders Insurance also offers comprehensive on-the-job safety training programs, as well as effective fraud-prevention programs. Builders is committed to quickly settling all legitimate claims - putting workers back on the job, healthy and ready to resume work - while at the same time vigorously prosecuting all fraudulent claims. Builders Insurance Company is a Nevada domestic insurer wholly owned by Nevada Contractors Insurance Company, Inc., a Nevada captive insurer. For more information, please visit the web site at http://www.nevada-comp.com.