Louisiana Oilfield Contractors' Association creates a new workers' compensation self insurance fund in Louisiana.
Baton Rouge, LA (PRWEB) March 3, 2004 -- The Louisiana Oilfield Contractors Association (LOCA) has formed a group self insurance fund for workers' compensation coverage for participating members, marking the first time this successful risk transfer mechanism has ever been employed for energy sector business owners. The LOCA Insurance Fund license takes effect in Louisiana March 1, 2004 and includes authorization to provide both workers' compensation and USL&H insurance.
Mr. Randy Haynie, Executive Director of LOCA, talked about the driving factors in forming the insurance fund saying, "Workers' compensation insurance rates for oilfield contractors in this state have increased by 92% on a compound basis in the last three years, while claims costs have declined to the lowest level in ten years. That's just not right, it just does not make any business sense in light of the industry's safety programs and positive safety records over the past decade. Something has to be done to preserve our oilfield businesses and the jobs they support by bringing insurance costs into line with actual claims experience."
The LOCA Insurance Fund is governed by a Board of Trustees composed of the heads of companies elected from the association's general membership. Mr. Richard Chalmers, President of Chalmers Collins & Alwell and Chairman of the Board of Trustees, described the mission of the fund, "The cost of workers' compensation insurance is the second or third largest business expense for oilfield contractors, but by far the most controllable. Our new fund is dedicated to providing LOCA members with the highest quality of service. We will work closely with each member company to reduce work place injuries and insurance costs to the lowest possible level. Each participating member's net cost of insurance will be driven primarily by their own loss experience. Only those association members with a good claims history and a strong organizational commitment to safety will be eligible to participate."
The Administrator of the LOCA Insurance Fund is Montlake Holdings, a specialist in workers' compensation insurance with a long track record of success in Louisiana. Additional information about the LOCA Insurance Fund can be obtained from Mr. Brian Gondron by calling 337-849-7477.
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