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January 19, 2012
To: LCIS Policyholders and valued business partners
Re: LCIS and CLCA Relationship Change
We have received many calls and emails based on the relationship change between LCIS and CLCA.
We want to take this opportunity to both thank you for all the calls and emails supporting LCIS and the services we provide, and dispel any misinformation that appears to be growing by the day.
As of January 01, 2012, you no longer have to be a CLCA member to take advantage of the LCIS insurance programs. While we still value our relationship with the CLCA and support the traditional vision/focus of the organization, you are no longer required to be a member of the CLCA to obtain or remain a valued client of LCIS. Simply stated and with regards to LCIS, this is the only change that impacts you, the landscape contractor.
LCIS will continue to be financial sponsors of CLCA at the ELITE level, remain supporters of local CLCA chapters, stay very active in local CLCA chapter meetings/functions and continue to hold local CLCA chapter board positions. We remain and are still advocates of the organization and good stewards of the green industry. LCIS remains committed to all landscape contractors and will continue to provide the best coverages with very competitive rates while supporting and providing specialized value and services to our LCIS landscape contractor policyholders.
What really happened?
The recent decision to end the exclusive contract between our organizations was a business decision driven primarily by the very same economic pressures that many of you are likely feeling within your own business. Our recently expired contract did not allow us to retain the business of any landscape contractor who did not wish to continue their membership with CLCA. This desire by our policyholders was increasing rapidly in recent years and was beginning to have an impact on LCIS financially.
Golden Oak/LCIS made a request to amend the existing contract and was seeking flexibility within our exclusive contract with CLCA regarding maintaining coverage (insurance policies) on businesses that either could no longer afford, or did not want to be, CLCA members. CLCA denied the request. Golden Oak/LCIS then sent a contract termination letter (per contract guidelines) and a follow up letter requesting our desire to negotiate a new contract. In addition, we presented CLCA with several options on this subject and we were open to their thoughts and expected some form of interactive response from the CLCA. After our formal presentation, CLCA opted not to negotiate with Golden Oak/LCIS on a new contract, but instead decided to honor the contract expiration and pursue other options. This was done without any member input or consensus.
For the past 20+ years, Golden Oak, Birch and LCIS have played a substantial role in supporting the CLCA as an organization, as well as playing a primary role in membership growth of the CLCA for many years. In addition to supporting the CLCA organization, our exclusive program supports the members in terms of competitive rates, annual rebates and equity, not to mention world class service and accounting flexibilities. In other words, we offer the best value for your insurance premium. We will continue to be the landscape contractor insurance program that was specifically developed for you by LCIS, Inc. over 22 years ago, and that you have all come to know, trust, depend on and support over the years.
All of us at LCIS look forward to working with you during the year and at policy renewal time. We can assure you LCIS will be as we have always been, very competitive. Thank you again for your calls and emails in support of the LCIS landscape insurance program - they are greatly appreciated.
Sincerely,
Kim Ayala, CIC, CISR, CPSR, CPIW, President/CEO
David R. Bloodgood, CIC, Sales Manager
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