Fall 2006

TRA Group Serves Buffet of Benefits for Agents and Their Clients
By David Wylie

Rick Madden is not an agent. He is, however, a smart businessman who knows a good deal when he sees it. If you’re an agent with clients in the restaurant business, he wants to tell you about one.

Madden is vice president of membership at the Texas Restaurant Association (TRA). Eight years ago, TRA partnered with Texas Mutual Insurance Company to form a purchasing group for restaurateurs.

Each TRA group member gets a premium discount based on the group’s premium volume, regardless of their individual premium size. Members can adopt a safety plan developed for the restaurant industry, and they are eligible to earn individual and group dividends.*

“The great thing about this program is that any licensed Texas agent can submit a qualifying client for membership, said Madden.

“It doesn’t cost agents anything, and it helps them increase their book of business, improve their marketing efforts and score major points with their clients by getting them a good deal on their workers’ comp premiums.”

Considering the obvious benefits of group coverage, the TRA purchasing group should be an easy sell. The real challenge may lie in convincing your clients that workers’ comp is the right choice for them.

Some restaurant owners think they have found a cheap substitute for workers’ comp by purchasing life, accident, health, disability or other alternative policies. If you have clients who are among them, Madden recommends that you tell them about the legal protection and peace of mind that comes with purchasing a workers’ comp policy.

Section 408.001 of the Texas Labor Code explains that, with a few exceptions, workers’ comp benefits are the injured employee’s sole source of recovery from an employer that carries valid workers’ comp coverage. Nonsubscribers, on the other hand, bear complete financial responsibility for an employee’s injury or death if they are found negligent. The total amount they could be responsible for is unlimited.

In short, going “bare” could cost them their business.

“TRA prides itself on protecting the interests of its members, and that’s why we’re so passionate about promoting group coverage,” said Madden. “I think it says a lot about this program that nearly 25 percent of the restaurants that carry comp are members.”

Madden adds that TRA membership is required for group membership, but the premium discount more than makes up for the cost of dues. To find out more about TRA and other Texas Mutual^® purchasing groups, click here.

*Past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

MUTUAL INTERESTS - Fall 2006
TRA Group Serves Buffet of Benefits for Agents and Their Clients
Texas Mutual Rolls Out Agent Network Support Program
Underwriting & Actuarial Services Fills Key Positions
Purchasing Group News
Texas Mutual Pays Hard Cash in Soft Market
Policy Issuance Notification by Email Now Available
Ken's Corner

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