The Texas Alliance of Energy Producers and Montlake Holdings announced they have established a self-insured group for workers’ compensation insurance, the only one of its kind in Texas for business owners in the oil and gas industry.
The Texas Alliance of Energy Producers Workers’ Compensation Group Self-Insured Trust was licensed by the Texas Department of Insurance and began accepting applications on July 1, 2005.
The new SIG will provide statutory workers’ compensation and employers’ liability coverage for qualified members of the Texas Alliance of Energy Producers whose primary business operations fall under oil and gas industry classifications, including companies engaged in oilfield trucking or hauling of fuel and petroleum products.
“Something had to be done to help our member companies exert control over the cost of workers’ compensation insurance,” said Texas Alliance President Alex Mills, in announcing the trust. “Our research shows that workers’ compensation rates in Texas have increased 68 percent since 1998, the second largest increase of any state in the country, while claim frequency and cost have actually declined. The group self-insured trust created by the Texas Alliance of Energy Producers will provide an opportunity for member companies with good safety programs to achieve really significant savings because the trust is owned by the member companies who participate in the program.”
“We are very proud to have been selected by the Texas Alliance of Energy Producers as the Administrator for its workers’ compensation group self- insured trust”, said Steve Clark, CEO of Montlake Holdings. “The Board of Trustees has charged us with the responsibility of underwriting and managing the trust to achieve the lowest possible cost of workers’ compensation insurance for the participating members. We will screen each new applicant carefully to make sure that only those companies with solid safety programs and good claims experience enter the Texas Alliance of Energy Producers’ trust. The companies who have qualified for the program thus far have saved about 25 percent on workers’ compensation premiums up front, with the potential to save even more based upon the experience of the group.”
The Texas Alliance of Energy Producers is one of the oldest trade associations in Texas and serves more than 2,800 member companies.
Montlake Holdings LLC is a specialty workers’ compensation company with a long track record in the oil and gas industry in Texas and Louisiana. Montlake Holdings also administers Louisiana’s only authorized workers’ compensation self-insured group for the oil and gas industry, the Louisiana Oilfield Contractor’s Association Workers’ Compensation Insurance Fund.
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