Boyle International Claim Management Group, LLC
Memorandum
From: Art Boyle
Date: 6/28/99
Ref.: Business issues
The following is to address some questions recently received that are pertinent to your potential working relationship with BCMG. I have found some time to review the archive files of the CADO site. Whew! Unfortunately, the majority of the postings have an overwhelming degree of truth & reflect the frustration experienced on both sides of the fence. As our web site reflects, I have been at this for thirty-six years. "I have been there," is an understatement. Suffice to state, we hope to eliminate as many of those obstacles as we can as we grow this company.
Our policy is to address any question(s) any one may have. You can communicate with me on any subject. All I ask is that we keep it on a professional level. The following addresses payroll issues, estimating systems, holdbacks, reporting and above all, communication:
- BCMG processes payroll on the 15th & 30th of the month through direct deposit.
- We are paying minimum commission rates of 65%. We will pay up to 70% based on experience, level of file handled & or if in a supervisory or management role. We will consider added incentives.
- We will apply a 10% holdback on monies earned. Holdbacks will be released @ sixty (60) days. We will assume the risk and process payroll out of our funds without waiting to be reimbursed by a client company. BCMG adjusters will be paid for the losses they have properly closed and billed upfront.
The risk for BCMG or any other vendor in up-fronting payroll lies in the possibility that a client company could reduce the allocated expense bill already paid by BCMG to its adjuster(s) forcing BCMG into a "short-paid" situation. We will take the financial risk to build a solid partnering relationship with our adjusters. It is called TRUST.
- BCMG does not apply any percentages against an adjuster's mileage, photos. Those are your out of pocket expenses and belong in your payroll.
- You will be provided with a detailed MS Access columnar report that reflects the files handled, in sequential ascending order, the amount billed, holdback applied, mileage charge, photo charge, telephone, supplements billed, paid and pending.
- You will always be communicated with regarding your assigned claims, pending and closed.
- Once our Internet connectivity is completed, you will be working on-line on BCMG losses through active server pages. We will provide you with the required hookups. You will be inputting data directly to the client company and our claim database. You will have access to your current billing at all times and know exactly where you stand.
BCMG has invested considerably in developing its database, connectivity and reporting capabilities. BCMG adjusters are communicated with. There is no mystery as to where you stand, what you earned and when you will receive it.
- We will provide you shortly with a direct deposit form for the payroll company we use (Paychex) to process automatic deposit to your checking accounts. The auto deposit is a one way street - IN - to your account. We have no access to your records other than depositing on the appointed date. Direct deposit is fast and accurate. Based on your production and our database technology, we can provide accurate up todate information to our payroll company. You have to insure that your work is turned in on time in order to be properly compensated. At year-end, you will receive all appropriate tax records.
- You are 1099 form adjusters meaning that you are independent and pay your own taxes. If you were working the majority of the year with BCMG as your principal employer, by IRS guidelines, we would have to apply withholding taxes on your income. Individually, if you prefer that we do, we can accommodate you.
BCMG has been discussing benefit plans and how those plans can be made affordable to independent sub-contractors. We hope, in the not too distant future to offer a package to our committed adjusters. Independent sub-contractors are responsible for their own medical coverage, unemployment, and taxes, etc. The inclusion of those benefits would make you full time employees, something you are not.
- The majority of sub-contractors do not carry their own E&O coverage. BCMG carries a $2M E&O policy and will be increasing that coverage to meet client demands in the event that problems arise from adjustment activities by adjusters working for BCMG and to which BCMG may become exposed.
- Questions have been raised regarding the use of particular estimating systems. We have been associated with E.H. Boeckh since the introduction of version 1. Our site has a direct link to the Boeckh web site. The official release is now public that defines the alliance between Boeckh & DDS. We support the agreement that will allow Boeckh to implement this 32-bit program that is truly state of the art.
A sizeable portion of the independent 1099 form adjusters uses DDS. The integration with the Boeckh Evaluation product will make it a very sound product. BCMG would prefer the use of either system. We will maintain backup copies of all estimates completed for all of the obvious reasons.
- Billing schedules for FWUA, NFIP have been provided. We will provide you with copies of all other schedules at the appropriate time. Suffice to state that we are attempting to make them as lucrative and competitive as possible for all. We are not in this business to fail financially on your behalf or ours.
BCMG has developed and is marketing a complete claim management response program to contracted clients and potential clients. In concert with our plans, we are looking to develop a long-term relationship with qualified staffing resources. BCMG has no desire to become the size of some of the major providers.
What we are going to become is a vendor of quality services to particular clients with a dedicated staff of professionals. BCMG may not be the "end all" for you. We will treat our personal relationships with respect and offer the best commission rates possible with a support network second to none. When an event does take place, judge us by our performance, as it affects you personally and not by the banal rhetoric found via the Internet rumor mill.
Regards,
Art Boyle
Toll Free: (877) 228-2567 (860) 529-3796 Fax: (860) 529-3942
Web Site: http://www.boyleclaims.com