The rapid growth of the ethanol industry has many construction companies and ethanol plant managers scrambling to find the right insurance protection in a very specialized field. Most insurance agencies and brokers have no experience with the specialized needs of ethanol plants and the construction companies that build them.
 
 Insurance companies also lack experience with the liability issues facing the ethanol industry. Most insurance companies either turn down applications for insurance when they are dealing with a relatively unknown risk, or they charge enormous premiums to cover their perceived risk.
 
 The ethanol industry also faces liability risks from accidents, which include injury, damage to property and as pollution. Many insurance providers ignore the safety records of ethanol plants and the safeguards that are in place to prevent problems. Instead, they just give ethanol plants a high risk rating and charge premiums accordingly.

 
 Pollution accident insurance is often overlooked, or thought to be too expensive by many companies in the construction and ethanol industries. "Pollution claims can often run way into the millions because of legal defense costs, and claims are becoming all too common in today's environmentally conscious world," explains construction and global energy insurance specialist Scott Helmer of Helmer Risk Management. "Many companies are not aware that pollution accidents are not covered by general liability insurance until they have a claim and then discover that they have no protection."
 
 Helmer specializes in helping clients in the ethanol and supporting industries, and is the owner of Helmer Risk Management insurance agency, headquartered in Phoenix, Ariz. He also assists companies in the oil and gas industry, such as refineries, pipeline contractors and operators. He knows the special risks these industries face and the best way to insure them at the least expense. Pipeline contractors, commercial general contractors, inspection companies, oil and gas refineries, and mining operations are just some of the types of industries that require specialized insurance protection. "It is all a matter of knowing where to place coverage for each need," Helmer says. "A local broker often does not have access to companies that offer specialized coverages. Many brokers may not even be aware of loopholes in the coverage they sell, such as accident pollution coverage."
 
 Improving Coverages
 When ethanol plants, operators of pipelines and refineries need specialized inspection services, they seek out firms like High Mountain Inspection Service Inc., a unique, highly experienced inspection company based in Casper, Wyo. When High Mountain needed specialized insurance coverage, it discovered they needed more help than its local insurance broker could give. The company went to Helmer for its special needs. He was not only able to improve coverages, but he also saved High Mountain nearly 30 percent. "That equates to tens of thousands of dollars in savings annually," Helmer explains. "That was not unusual. I am often able to find significant savings for the companies I help."
 
 High Mountain President Susan Fraser says she was so impressed with the improved benefits and coverages Helmer found for her company that she has been telling others about it. That is how Helmer came in contact with JANX, a company that provides nondestructive testing to the energy industry. JANX has been providing nondestructive testing, tools, and consulting to energy industry customers throughout the United States since 1981.
 
 Helmer went to the JANX headquarters in Parma, Mich., and performed a careful analysis of all the insurance the company had in effect. As a result of Helmer's recommendations, JANX was able to significantly improve all coverages and reduce the overall annual expense for insurance by 25 percent. "In this particular case, that savings amounts to about $100,000 a year," Helmer says. There was no direct cost to JANX for Helmer's services since he is compensated by the insurance companies.
 
 "We appreciate the professionalism and effectiveness of Scott Helmer," says John A. Newland, JANX president. "He was able to understand the nature of our highly specialized business, and his insurance knowledge made it possible for him to improve our coverage and reduce our expense. We are particularly grateful for the improvements he made in our pollution accident coverage."
 
 Tailored Insurance

 There is no one insurance solution that works for all clients, and specialized coverage requires a specialist with plenty of experience. No one wants to find out that their company bought the wrong kind of insurance at the point when a claim is filed. 
 
 "Each client is different, and it is important to know all the possible ways to insure each situation," Helmer explains. "Because I am independent I can make a recommendation that is right for the client." He suggests that companies, large and small, request an audit of their current insurance program and a competitive proposal on an annual basis. Many times, it is possible to find better coverage for the same or lower cost. In addition, it is crucial to contemplate any new business exposures that may be present in the coming year.
 
 "Many insurance agencies try to be all things to all clients in order to reach their sales and production goals," Helmer says. "They write personal lines, commercial lines, life and health insurance. We do not. We believe that to be competent in all areas is not possible. Our goal is not to be the largest agency, but to truly be the best at what we do. Specialization provides us with that opportunity."
 
 By focusing on a segment of the industry, Helmer believes the company will better know and understand its clients' needs, and will be able to negotiate the best terms for coverage from insurance companies. He adds that Helmer Risk represents its clients actively during any claims process.
 
 Helmer Risk does not charge clients additional fees to service their accounts. Helmer says many national insurance brokers receive compensation from the insurance carriers via a commission, and then turn around and charge their clients additional fees to handle the account. Helmer does not do this.
 
 "Helmer Risk is an alternative to the national insurance brokerage houses, offering a more personalized level of service with focused specialization on our client's type of business operations," Helmer says. 
 
 Helmer Risk Management provides insurance brokerage services for companies across the United States, many with operations worldwide. The company maintains a Web site at <a target="_blank" href="http://www.helmerrisk.com">www.helmerrisk.com</a> and can be reached at (602) 275-1996.
 

 Author David M. Bresnahan is an award-winning journalist and public relations expert, who lives in New Hampshire. Reach him at david@bresnahan.com or (603) 522-0148.

Ethanol Plants, Construction Companies Need Protection from Unique Risks

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Upcoming Events

2024 International Fuel Ethanol Workshop & Expo

Biodiesel Summit: Sustainable Aviation Fuel & Renewable Diesel

Carbon Capture & Storage Summit

North American SAF Conference & Expo

2025 International Biomass Conference & Expo

Ethanol Plants, Construction Companies Need Protection from Unique Risks