Learning Center
Plans & pricing Sign in
Sign Out
Get this document free

The Protector (PDF download)


									                                                                                                                             Fall 2000

                                           The Protector
                                                     THE NEWSLETTER FOR CLIENTS AND FRIENDS
                                                 OF THE PROTECTOR GROUP INSURANCE AGENCY, INC.

Quabaug Corporation
From North Brookfield
                                                                                               Quabaug has also ventured into
to "the roof of                                                                            other exciting new areas including

the world"                                                                                involvement in shoe repair with some
                                                                                          2500 authorized VIBRAM repair centers
                                                                                          across North America and the purchase
          he Quabaug Corporation,

  T       located in North Brookfield, MA,
has reached some rather impressive
heights in the 84 years since Roger
                                                                                          of N.E.O.S., an overshoe company.
                                                                                          Whatever Quabaug is involved in, you
                                                                                          know they’ll finish on top.

Varnum’s grandfather was asked by the                                                     On The Protector Group
bank to take over a then failing rubber                                                     The Protector Group has had the
company. At the end of World War II,                                                      privilege of being along for much of
Quabaug was awarded the Army-Navy E                 On the future                         Quabaug’s corporate ascent. "We’ve
for Excellence for the products they             While Quabaug has grown, the

provided to the military during the war.     domestic shoe industry as a whole has

Conquering Mt. Everest—"the roof             shrunk dramatically. Roger Varnum tells

of the world" was another of                 us, "In 1988, approximately 70% of the

those heights.                               shoes sold in the United States were
                                             made in the United States. In 1999, the
On business today
                                             percent of shoes sold in the United
  Today, partners Roger Varnum and
                                             States that were made in the United
Kevin Donahue lead a thriving Quabaug
                                             States was less than 5%."
Corporation with 235 employees.
Quabaug manufactures products used             So how does Quabaug not only
by the shoe industry. Its leading brand      survive tremendous foreign competition,
                                                                                          Bob Vaudreuil, The Protector Group; Roger Varnum, Quabaug;
name is VIBRAM® shoe soles. Quabaug          but flourish? One reason is commitment       George Vogel and Susan Bernard, The Protector Group;
                                                                                          Kevin Donahue, Quabaug, on Supplier Appreciation Day
is the exclusive manufacturer of VIBRAM      to quality. "Quabaug has always prided
soles in North America. They supply to       itself on making quality products," says     had a long relationship with The
leading shoe manufacturers including         Roger Varnum. Kevin Donahue adds,            Protector Group. They handle all our
Allen Edmonds, Cole Haan, Redwing and        "We must continue to invest in new           insurance needs. We’ve worked closely
Timberland. The VIBRAM brand is rec-         technology in order to provide innovative,   with Bob Vaudreuil, George Vogel and
ognized worldwide as the leader in high      high-quality products. We recently           Susan Bernard," said Roger Varnum.
performance soling products for outdoor,     patented the design that has been            Kevin Donahue concludes, "They are a
dress casual, and service footwear. In       accepted for the combat infantry boot        very professional organization staffed
fact, since 1962, VIBRAM soles have          to be worn by US Marines and the             with very professional people who have
been on the boots of many of the             Canadian Military. The military is a         kept us out of harm’s way. We can only
conquerors of Mt. Everest.                   very important market to us."                speak of them in superlatives."
   Michelle knows what                                                            That’s a Wrap...
       clients want.
  (Sometimes before they do)
  How do you describe what Michelle Anctil
                                                                                         On Liability and
brings to the position of Client Service
Manager? Let’s start with enthusiasm,
commitment and talent.                                                            Crime Coverage
   As Client Service Manager, Michelle
is responsible for managing the client
                                                      Wrapping up the details is what the newest product from Travelers is doing for
service operations of The Protector Group’s
                                                    agents and their commercial customers.
personal lines, commercial lines, and
employee benefits/financial services                  Known as The Wrap,SM this new product offers professional liability and crime
departments. She brings over 15 years               coverages in one policy, including:
of diverse insurance experience to her                • Directors & Officers Liability
position. Before joining The Protector Group,
                                                      • Employment Practices Liability (EPLI)
Michelle held managerial positions at
Worcester Insurance Company, and was                  • Fiduciary Liability
an underwriting supervisor at Commerce                • Crime/Fidelity with ERISA Inflation Guard
Insurance Company.
                                                      • Kidnap & Ransom (K&R)/Extortion
                                                      "Wrap allows customers to purchase all employment-related specialty coverages
                                                    in one package policy, and makes for a more efficient and easier approach which
                                                    reduces coverage gaps," says Peter G. Herron of Travelers. This idea is especially
                                                    appealing to insureds who have not yet bought specialty liability coverages such as
                                                    fiduciary liability and employment practices liability.
                                                      According to Herron, "The product’s benefits are many. The Wrap is flexible and
                                                    can be tailored to each customer’s specific needs. It is comprehensive, offering an
                                                    array of coverage choices that minimizes gaps or overlaps. It is simple because
                                                    there’s a single application, issuing company, policy, effective date and claim facility.
                                                    From the customer’s perspective, it is affordable. Customers may expand coverage
                                                    economically through package discounts and also have the opportunity for premium
                                                    savings by allowing different coverages to share a common policy limit."
                                                      The Wrap is designed specifically for customers who are privately owned manu-
                                                    facturers, wholesalers and distributors with 1,000 or fewer employees, and revenues
   Michelle says, "One of the things that
                                                    of $100 million or less. Selected business services and retail services may also be
excites me about working here is that
                                                    good candidates. Other special features include:
because of my experience I understand—
                                                      • Common policy terms and conditions, thereby reducing coverage gaps/
and can balance both the company’s and the
                                                        overlaps and differences often evident with separate policies.
clients’ needs. I can develop a staff that not
only meets the company’s needs but, more              • Risk Management Plus+SM included with the purchase of EPLI. This
importantly, meets the needs of our clients."           comprehensive, ready-to-use program helps decrease exposure to
She adds, "Timely and equitable claim settle-           employment-related claims while reducing workplace theft and violence
ment is—and will continue to be a priority              and workers’ compensation fraud.
with all our staff. My ultimate goal is to have       • Kidnap & Ransom Crisis Management services included with the purchase
the entire staff be able to forecast our clients’       of K&R. Crisis management services are available 24 hours a day, 365 days
needs before they need us."
                                                        a year.
  Michelle lives in Charlton with her
                                                      The whole concept behind this state-of-the-art product is to "wrap" all coverages
husband and two sports-loving boys,
                                                    into a single policy, application and renewal process.
ages 8 and 13.
One Big Happy Family of 5000

    A       cterna Corporation, formerly Dynatech, is a successful
            high-tech networking company with corporate headquarters
in Burlington, MA. Acterna enables its customers to strengthen
profitability by improving service to their customers with a wide
range of network analyzers, systems, software, strategic services
and technical training. Customers include service providers,
enterprises and equipment manufacturers. As a result of a merger
                                                                                      the Acterna banner.
back in May, Acterna doubled in size. Today they are a global
                                                                                      Will she succeed? Oui! Si! Ja! Yes!
company with 80 locations outside of the United States and
5000 employees worldwide.                                                             On the future
                                                                                        Success in the future will depend on continuing to do the
On business today
                                                                                      things that have made Acterna successful today. One important
    The task of making (and keeping) this big family happy rests
                                                                                      area is keeping and attracting talented employees. Carol tells us,
on the able shoulders of Acterna’s Director of Corporate Benefits,
                                                                                      "In our industry, the competition for talent is fierce. Our goal is to
Carol Cristiano. Working in Human Resources, Carol’s focus is
                                                                                      become the employer of choice to attract the industry’s best and
                                                               people. Carol
                                                                                      brightest." Carol believes the company’s 401k plan is particularly
                                                               faces a number of
                                                                                      attractive. She said, "We have an outstanding plan. I can say that
                                                               challenges in trying
                                                                                      without fear of contradiction. It is good news for our new people
                                                               to bring everyone
                                                                                      and is very well appreciated."
                                                               together and up
                                                               to speed. How do       On The Protector Group
                                                               you say 401k in a        Acterna historically had never used brokers. Then several
                                                               dozen languages?       years ago The Protector Group’s Tom Connors made a cold call
                                                               Merging all of         to Carol. Uncharacteristically, she had him come in. She threw out
Melissa Walker, Acterna; Tom Connors, The Protector Group;     these different        a task. The same task that she had given to many brokers in the
Carol Cristiano, Acterna; Bob Vaudreuil, The Protector Group   cultures into one      past. The others had never responded. Carol finishes, "It wasn’t
corporate culture with one integrated benefits package is not                         a week later that Tom came back with a comprehensive report
easy. There are different regulations, requirements and pension                       with all kinds of proposals. It saved the company a tremendous
schemes within each of the separate companies now under                               amount of money. We’ve been with them ever since."

                                           Industry Expert Says Rates to Rise
    The past 12 months have seen an increase in pricing in commer-                     were driven down primarily by competition—aggressive pricing
cial lines (business insurance): package insurance, property liability,                by companies trying to gain market share." As a result, during that
commercial automobile and workers’ compensation. "This is quite                        time, commercial accounts actually saw their rates either stay the
a change," according to Mr. Barry May, President of Hanover Ins-                       same or go down.
urance Company, a property casualty company with headquarters                             Now the market is hardening. Mr. May explains, "We are seeing a
in Worcester, and a part of Allmerica Financial Corporation. "The                      rationalization of the market—the market is correcting itself." Why?
property/casualty industry has been in what is known as a soft                         According to Mr. May, "In 1999, the return on equity for the property
pricing cycle for about ten years. During that period of time, prices                  casualty industry was 6.4%. Compare that to the Fortune 500
                                                                                                                                   continued on back page
                     Insurance InSITE
         nsuring You Make the Right Decisions is our top priority. It’s   you need at The Protector Group’s site. With a click of your

     I   why our WEBsite ( was created.
         If you’re interested in reducing your workers’ compensation
                                                  costs, providing
                                                                          mouse, you’ll discover what sets us apart from other independent
                                                                          insurance agents: the wide range of our expertise along with our
                                                                          commitment to provide the best products and services from
                                                  comprehensive           the finest insurance companies. You can also find out what’s
                                                  employee benefits,      Hot in the Insurance Marketplace, request a quote for personal
                                                  or protecting your      automobile insurance, and contact our insurance professionals
                                                  business interests      at any of our offices 24 hours a day, 7 days a week.
                                                  with Errors and           Check it out the next time you’re surfing the web, and let us
                                                  Omissions coverage,     know what you think. We welcome any suggestions on how to
                                                  you’ll find just what   serve you even better.

   continued from previous page

 Industry Expert Says Rates to Rise

   Average of 16.5%." Also from 1999, "For every $1.00
   written in premium, companies lost $1.07." Profit is down,
                                                                                               hen we do the best
   as is net income and return on equity. Simply put, insurance                              that we can, we never
   companies are not producing the return on investment their
                                                                                             know what miracle is
   stockholders expect. The message is clear. They want to
   restore profitability.                                                                    wrought in our life, or
      Mr. May concludes, "We will see a restoration of writing                               in the life of another.
   discipline, companies making sure to get the right rate for the
   risk, which means higher rates. Companies will also be more                               — Helen Keller
   careful about the types of business they write, being mindful
   of companies that have had loss problems or are higher risk."

                                                                                                                                   PRSRT STD
                                                                                                                                  US POSTAGE
                                                                                                                                 WORCESTER MA
                                                                                                                                  PERMIT NO. 2

5 Neponset Street
Worcester, MA 01606
(888) 850-9400
Worcester • Wellesley • Leominster • Millbury

To top