When conversations began with Rocky Mountain Crude Oil in 2017, it started with reviewing the unique truck insurance needs they had related to their business model. Rocky Mountain is a midstream energy services provider, safely transporting oil from upstream production sites to refineries in Colorado, North Dakota, Montana, Wyoming, Texas and New Mexico. Not only do they own and operate a fleet of over 70 trucks and trailers on a 24-hour schedule, they also employ more than 110 skilled truck drivers.
At that time, they were looking for a transportation insurance specialist to review their insurance portfolio with a recent acquisition and to address some challenges they had obtaining affordable insurance policies for their entire operation.
Comprehensive Solutions: From Cost Control to Building a Safety Culture
Hauling crude oil presents some unique safety and environmental risks and options in the insurance marketplace can be limited. Rocky Mountain understood the importance of safety and the impact it can have on employees and insurance costs. With deep transportation experience, market access, and a comprehensive approach, PayneWest was able to provide a wide range of solutions from truck insurance to improved employee benefit management.
The PayneWest team worked with the leadership at Rocky Mountain to implement cost-saving solutions that lowered the company's risks and improved operations:
- Premium Model Based on Mileage: To optimize premiums on truck insurance, the PayneWest team recommend a premium model based on mileage, rather than a flat premium based on number of trucks. With improved reporting, Rocky Mountain now pays a premium based on miles traveled each month. With the volatility in the oil market, it right-sizes the premium to the current reality of the day, meaning when trucks are traveling fewer miles, Rocky Mountain isn’t stuck with a high monthly premium cost.
- Risk Management Review: Rocky Mountain has a history of proactive Risk Management, but was looking for additional support. PayneWest provides an annual and on-going risk management review to assess areas for improvement that keep Rocky Mountain positioned as an industry leader.
- Improved Worker’s Compensation Performance and Lower Costs: Through the proactive safety partnership, Rocky Mountain lowered its number of injuries, safety incidents, and lost time due to injuries leading to lower worker’s compensation costs. “Our main focus was employee safety and preventing injuries, “said Jeff Beighly, Director of Environmental Health and Safety for Rocky Mountain. “Through our partnership with PayneWest, we were able to access resources and create a plan and consensus across our organization on how to tackle these issues through training and education.”
- Self-Funded Benefits Strategy for Flexibility and Efficiency: Looking for ways to streamline access and employee benefit costs, PayneWest evaluated Rocky Mountain’s health plan and recommended a change to a self-insured model, with layers of reinsurance protection. These changes will help to lower overhead expenses, contain costs and allow the flexibility to add benefits to respond to workforce needs and company culture. In addition to a national provider network, Rocky Mountain was able to add coverage for preventive prescription drugs, telemedicine and improved technology to allow employees improved and easier access to their benefits.
- Insurance Certificate Management: For many of its clients and when entering into new contracts, Rocky Mountain is required to maintain and update its insurance certificate database. PayneWest has provided solutions and oversight to ensure that everything is up to date and correct to facilitate a smooth process when working with current or new clients.
It is the collaborative approach that allowed PayneWest to see the whole picture and develop comprehensive risk management solutions.
"Our work with Rocky Mountain demonstrates that we can do it all for our clients and at a high-level,” said Aaron Stieg, PayneWest Transportation Specialist. “Because of our team members' extensive industry knowledge, we partner across our areas of expertise from transportation to employee benefits to ensure that nothing is slipping through the cracks."
“PayneWest has provided exceptional service and is a great strategic partner,” said Beighly. “We are really in alignment in how we work together and in how we think. I will reach out Aaron or the team for a different perspective or advice when we have issues or concerns and they are always responsive.”