A ripened talent: a farm boy from Minnesota with a passion for autocross finds himself in charge of risk management for an agribusiness conglomerate. His journey has taught him that managing risks in the tomato industry is no small potatoes

Risk & Insurance, August, 2004 by Mindy Toran

Ever since he was 14 years old, Michael Benishek has been focused on managing risk. An avid soapbox derby enthusiast, he was working on his racecar on a Sunday night when he accidentally ran his finger through a table saw. Aside from requiring stitches and angering his parents he had an epiphany. "I made up my mind that people shouldn't get hurt doing things like that," says Benishek. "There should have been something on that table saw that would have prevented my accident. That's how I got started in safety and risk management."

At the time, Benishek's mother worked as an assistant safety director for an aluminum manufacturer. When her boss needed a summer assistant little Mike was hired to conduct noise-level surveys. The young Benishek went on to major in Occupational Safety and Health at the University of Wisconsin and that launched a career in risk management as a safety director for a construction company.

But when the industry went bust in the late '70s, he moved on to loss control at an insurance brokerage. In 1993, a former colleague referred him to a tomato company looking for a risk manager and Benishek stepped into the position of director of risk management and insurance at PTG Management Co., a privately held international conglomerate. Based in Sarasota, Fla., the company is among the largest growers of fresh tomatoes in North America.

Benishek's responsibilities include dealing with human resources issues, loss control and risk financing. He's also responsible for employee housing issues and malting sure workers are being paid a fair wage for an honest day's work.

BOGUS CLAIMS A 'BURNING' NUISANCE

One of Benishek's biggest challenges is dealing with nuisance claims and in the agriculture business that's more than dealing with mundane slips and falls.

For example, the company often burns underbrush to create access to the land for new plantings. Benishek recalls one claim which accused the company of burning down part of the Everglades swamp. The company denied it had burned any land on the day in question. But PTG was still stuck with paying the costs of defending the claim.

"I take exception to people picking my wallet when it comes to bogus claims," Benishek says. Then there are transportation issues. "When it comes to transporting the produce, any crew leader that provides transportation of any kind to the workers must comply with all of the federal and state statutes, especially the Migrant and Seasonal Agricultural Worker Protection Act," he says.

That may not sound like much. But PTG has a fleet of approximately 450 vehicles. Last year, the company had just 18 automobile claims. Half of them were due to other drivers hitting PTG vehicles, says Benishek.

Food safety is also a top concern at PTG. "All farm employees are trained in the safe use, storage and handling of chemicals used on the farms," says Benishek. "In addition, all chemicals are kept under lock and key, and all of our farmers hold a certified applicators license."

"Mike cares deeply and passionately about what he does, and expects everyone to play a role in managing risk," says Billy Heller, COO at PTG Management. Colleagues credit him with having a highly developed sense of humor--perhaps the most important ingredient for any risk manager facing the challenges of the agribusiness.

"Take a person like Mike with a passion for life, a sense of humor about himself and the things that transpire around him, then add a willingness to pitch in when it's needed and a clear compassion for others, and you have a recipe for success," says Fritz Kloepfel, a fellow autocross enthusiast.

LESSONS IN STAYING ON COURSE

When Benishek is not wading through claims, he spends his time dodging slalom cones in his Mazda roadster, competing in regional autocross events. The driving challenges teach him just as much about risk as does his day job at PTG.

"I've learned a lot about risk management from racing, and vice versa," says Benishek. "As long as you identify the risk you're taking and take the appropriate measures to control the risk, you have nothing to worry about. If you stay on course, and stick to that philosophy, you'll have fun. If you try to take short cuts, you're inviting disaster," he stresses.

Efficiency rather than speed is the key, Benishek also says. It's not how fast you go, but how safely you're able to navigate through a series of cones in time-trial competitions. "You need to think things through to determine the best course of action, whether you're insuring, transferring or controlling your risk," he says. "One mistake many risk managers make is to always look for the latest and greatest new thing. I've found it much easier to keep it simple. Get your basics down first, then take a little step further to see if you can incorporate something new into your existing program. If you're trying to chase that horse that's running away from you over the horizon, you're only going farther away from the basics, and you'll never catch up."

"You won't go any faster by hitting the gas," he says, referring to his autocross talents. "You'll only end up burning up your tires, hurting your car and maybe yourself, and you'll end up dead last. But if you pace yourself and look ahead, you may just come out a winner."