A Family s Secret to Business Success: DO QUALITY WORK FOR A FAIR PRICE AND CUSTOMERS WILL COME TO YOU. Feature

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1 Feature A Family s Secret to Business Success: DO QUALITY WORK FOR A FAIR PRICE AND CUSTOMERS WILL COME TO YOU C osten Floors, Inc. has been helping home and business owners select and install new flooring for more than 66 years, and owners a father and son duo credit their success to skillful employees, quality work and excellent customer service. Our staff offers years of experience and knowledge not often found in large national chain stores, said President Ralph (Tripp) L. Costen, III. It s what separates us from the rest. And Scott Insurance, along with BrickStreet Insurance, has been helping Costen Floors management for the past two years with their workers compensation insurance goals of finding safety-focused solutions to lower claims and saving money. Today, Costen Floors offers high-quality floor coverings in a wide variety of choices from natural hardwood to ceramic tile floorings and carpeting in all colors, styles and budget ranges. The company is located in Henrico, Va., and, out of a 30,000-square-foot brick facility, serves thousands of home and business owners such as the 4 InSide BrickStreet Magazine Winter

2 Virginia Museum of Fine Arts and the Virginia Commonwealth University Siegel Center, to name just a few. Costen Floors was founded in 1948 by Ralph L. Costen, Sr. He ran the business until his son Ralph L. Costen, Jr. took over management in the 1990s as the chief executive officer after having grown up in the business a position he still holds today. Tripp Costen, III said he learned about the family business from an early age and held several positions during the past 20 years before becoming president in The family also owns two subsidiary companies Creative Flooring Solutions and Costen Flooring America, both based out of Richmond, Va. FROM CHALLENGES TO SUCCESSES Costen Floors is a well-known company in the area, with a credible reputation for quality products and customer service. The secret to our success has been the value statement my father used to run this company and instilled in me, do quality work for a fair price and the customers will come to you, said Tripp Costen, III. However, only a few years ago, with the downward turn of the economy and a changing flooring industry, the company went from 140 employees down to 60 within two years. Focused heavily on other business matters, company management realized they did not have an effective workers compensation insurance plan in place. With a retiring insurance agent and hundreds of thousands of dollars in workers compensation losses leading up to 2012, Costen Floors management was introduced to Scott Insurance agent John Pendleton, who is based in Richmond, Va., and BrickStreet employees Brent Smith and Julie Hathaway to help with their needs. Safety and loss and returnto-work services were areas in which Costen Floors particularly needed guidance. The new team of experts began working with the company to help put effective workers compensation insurance programs and services in place immediately. It was a tough couple of years for us, said Tripp Costen, III. At the time, we were not in the right frame of mind when it came to workplace safety and other workers compensation matters. We didn t have a sufficient plan in place. We were focused on other areas of our business. Safety was put on the back burner; actually, it wasn t even put on the stove. We needed help. Your Business. Your People. You re Covered. 5

3 RESULTS FROM THE FIRST YEAR ALONE WERE A 99 PERCENT REDUCTION IN CLAIM COSTS, ELIMINATION OF LOST-TIME CLAIMS AND SIGNIFICANTLY IMPROVED TIMELINESS. BRENT SMITH, BrickStreet Safety and Loss Control Consultant THE TRANSFORMATION BEGINS Pendleton explained how the partnership of the three companies began. We analyzed all of their loss history, made recommendations and then switched the account to BrickStreet, he said. Workplace safety guides and rules were established for the next six months with the BrickStreet partnership plan. However, continued Pendleton, the president of Costen wanted it done in a shorter period of time (two months). He was, and continues to be, serious about fixing issues. He is really focused on improvements. With a new focus, Sean Collard, operations manager at Costen Floors, was hired and charged with helping to improve the company s safety program. Collard s efforts have been integral to revamping the safety program at Costen. Tripp and Sean have really taken the bull by the horns and worked hard to turn this around, Pendleton said. Kim Bales, human resources manager at Costen Floors, said the teams at Scott Insurance and BrickStreet took a risk on them. We weren t an attractive client and we knew that, she said. But, they were, and continue to be, very supportive and are great partners. They helped us put an emphasis back on safety and structure, and made it easy for us to accomplish our safety goals. She described how the team explained things in a way Costen Floors could understand. They took the time to listen and to learn why we were in the position we were in, Bales said. They gave us the tools and support we needed, and created a customized plan that made sense for us a plan that kept workplace safety top of mind. Smith, a safety and loss control consultant with BrickStreet, added, Resources from the client, agency and carrier were utilized to drive forward changes in a timely manner. Results from the first year alone were a 99 percent reduction in claim costs, elimination of lost-time claims and significantly improved timeliness. The company has had few claims with BrickStreet since their relationship began. In fact, during the past year BrickStreet has written less than $2,000 in losses a vast improvement from just a few years ago. 6 InSide BrickStreet Magazine Winter

4 A COLLABORATIVE RELATIONSHIP The company [BrickStreet] does a very good job at establishing and maintaining a positive working relationship with clients, Bales said. They also have a great library of resources and often share safety materials with employees, subcontractors and in common areas throughout the workplace. The positivity, energy, creativity and strategy all aimed at working toward viable solutions are what Collard said he values most from the companies relationship. The team provides invaluable ideas and are able to show us how other companies in our industry benefit from similar workers compensation solutions, particularly in regard to return-to-work programs. Because an organization s workforce is its most valuable asset, employee illness or injury can affect productivity, morale and the bottom line. Everyone is impacted; therefore an effective return-to-work program helps employees work while still recuperating, which protects their earning power and boosts an organization s output. Collard said before working with John (Scott Insurance), Brent and Julie (BrickStreet), he never realized how impactful the labor side of things was to a company s bottom line. Keeping lost wages out of claims can really help. We realized quickly that modified work is just that it s a temporary position with modified responsibilities. It doesn t have to be their (injured workers ) routine jobs; it s simply important to find productive work. Our team has brought lots of great ideas to the table, and our employees as well as the company have all benefited. As an example, Tripp Costen, III explained how a flooring installer late last year was injured on the job and couldn t continue working in the same capacity. Once the claim was filed and the proper processes were put into motion, he was placed in the retail showroom where he priced sample flooring for customers. A tedious job, but we didn t lose productivity and he was able to work TRIPP AND SEAN HAVE REALLY TAKEN THE BULL BY THE HORNS AND WORKED HARD TO TURN THIS AROUND. JOHN PENDLETON, Scott Insurance Agent the entire time, he said. I have to admit, he went back to work very quickly and was thrilled to do so. Prior to working with BrickStreet the company experienced some losses. It s very difficult when you have accidents and have to make tough phone calls to family and friends, Collard said. Since we ve been with BrickStreet, we haven t had to make those calls because we haven t experienced any serious injuries. To have those negatives less and less is a huge deal. Hathaway, a BrickStreet returnto-work specialist, said from the initial meeting with Costen Floors and Pendleton, it was obvious they understood and shared BrickStreet s philosophy and values. They have been great partners and that is demonstrated in their concern for the well-being of their employees and their proactive efforts. They have implemented a return-to-work program to not only return injured employees to work activities, but to support their rehabilitation so they are able to return to their normal activities and functions of their lives, improving all outcomes, she said. The big focus remains workplace safety programs. The company is considering instituting a new preemployment physical capabilities testing program and post-accident evaluation as proactive measures to keep safety top of mind. More than just dollars, Costen Floors cares about their people so this is very important to them, Pendleton added. Costen Floors and its subsidiary companies employ about 100 people. Depending on the project, typically between 15 and 30 subcontractors also work for one of the three companies. Costen Floors insurance team also has worked closely with them to develop a more thorough and comprehensive subcontractor agreement. We created an agreement to where there is much less of a liability on us as a company, Tripp Costen, III said, which is a very important piece to protecting us and the company as a whole. Bottom line, he said, the team we have in place is solid. They are experienced, thorough, and communicate and follow up with us without micromanaging. They truly care about us. We couldn t be happier. Your Business. Your People. You re Covered. 7

5 Feature AGENT SPOTLIGHT: John Pendleton, Scott Insurance WE WORK HEAVILY WITH HIGH-RISK CLIENTS... TO UNRAVEL THEIR ISSUES. BRICKSTREET IS RIGHT THERE FACING THEM WITH US, PROVIDING HELPFUL SERVICES AND TOOLS TO WORK THROUGH THE CHALLENGES. A property and casualty risk advisor with Scott Insurance in Richmond, Va., John Pendleton had planned to work for the Central Intelligence Agency (CIA) after college graduation. But shortly thereafter he found himself at a crossroads and struggled with his initial dream of working for the government agency. Ultimately he chose insurance and says he is so glad he did. I m a language nerd, he said. I studied a few different languages in college and wanted to work for the CIA. After college I lived in the Middle East briefly and then worked in sales while navigating the CIA interview process. This process took more than a year, and I began to realize I no longer had the desire for that lifestyle. I moved on from the CIA opportunity and got in touch with Scott. They were kind enough to take a chance on me and I never looked back. Now, two-and-ahalf years later, Pendleton said he couldn t be more thrilled to be working in the insurance industry and for such a great company. Scott Insurance is incredibly generous in the amount of time and resources they invest in producers, specifically younger producers, he said. I am fortunate to have learned so much since being here, and continue to learn on a daily basis. The senior producers are willing to co-produce accounts and teach you along the way; I learn something new every day. JOHN PENDLETON Property and Casualty Risk Advisor Scott Insurance Pendleton said he enjoys working with clients and helping to find solutions for their particular insurance needs. His relationship with BrickStreet Insurance started after his company s orientation was focused on workers compensation issues. Quickly, he said, he learned that one of the many reasons Scott works with BrickStreet is because of its ability to face workers compensation issues and challenges head on. We work heavily with high-risk clients to unravel their issues, he said. BrickStreet is right there facing them with us, providing helpful services and tools to work through the challenges. Pendleton was quick to point out BrickStreet s strong commitment to partnerships. The main benefit I ve seen is that BrickStreet is willing to have a conversation, to come in and discuss issues and challenges a client may be facing, he said. They are willing to consider policies that have a bit more hair on them and commit to help that company deal with a lot of issues. That commitment to partnering with the agent and policyholder really helps to turn the ship around and steer it in the right direction. Pendleton s primary experience with BrickStreet has come from his professional relationship with Costen Floors, Inc.,* a well-known flooring company in Henrico, Va. Costen Floors has been a customer of both Scott and BrickStreet for the past couple years. Initial meetings with BrickStreet s Scott Rittenhouse, regional production underwriter, and Brent Smith, safety and loss control consultant, changed company management s perception and ultimately the direction of their policy. After Brent met with the executive team, together they established a set of guidelines and rules through the use of the BrickStreet 360 partnership plan, Pendleton said. Company President Ralph (Tripp) L. Costen, III and his team take the partnership plan very seriously. The company made extensive changes to its safety programs, which have improved tremendously, he said. It has been a team effort from all sides. Brent has come back to the policyholder and discussed the partnership plan, identifying areas of further 18 InSide BrickStreet Magazine Winter

6 improvement or achievements from each previous visit. Pendleton continued, The combination of all three parties involved has really set a tone that together we can accomplish what we need to. That level of accountability and transparency is so crucial to everyone involved and really opens up policyholders eyes to the bottom line and how they can improve. The successful partnership established between BrickStreet and Scott paves the way for future relationships, he added, and he said he envisions a bright future with BrickStreet. BrickStreet provides clients with super solutions and service, he said. BrickStreet works well with higher casualty, high-risk businesses. Scott specializes in these types of policies. The partnership between Scott and BrickStreet has a great future ahead, and I look forward to being a part of it. Scott Insurance is celebrating its 150th year in business. The company, which has offices in Virginia, Tennessee and North Carolina, specializes in workers compensation, property and casualty, employee benefits, wellness programs, bonds, and private risk. Visit for more information. *For more information about Costen Floors, Inc. please see page 4. SUBSCRIBE TODAY! Simply brickstreetinsights@brickstreet.com or visit the BrickStreet website, click on the publication link, then click on the most recent issue and subscribe. Your Business. Your People. You re Covered. 19