New Insurance Firm Believes In Good Works

By Susan Bush12:00AM / Tuesday, April 18, 2006Print Story | Email Story

GoodWorks Insurance LLC President and CEO Joseph L. Grochmal

Great Barrington - GoodWorks Insurance LLC President and CEO Joseph L. Grochmal is hoping that his recently-launched insurance company succeeds financially, but the reasons may come as a surprise to most people. Grochmal has pledged to donate 50 percent of the firm's operating profit on a yearly basis to non-profit, community-based organizations that support education, health care, and public safety. Simply put, the more money the firm makes, the more revenues there will be to contribute. And Grochmal isn't waiting for piles of money to roll in before making good on his word; speaking during an April 18 telephone interview, Grochmal said that he will donate a total of $15,000 to local non-profits yearly until the fledgling business generates actual profits. Donations will be focused on agencies that offer services in communities that host GoodWorks branch offices. Last week, a $4,000 donation was made to the Berkshire Hills Fund For Excellence, administered through the Berkshire Taconic Community Foundation. The donated revenues will benefit the Berkshire Hills Regional School District. Patent-Pending The business strategy - dubbed "responsible capitalism" on the company web site - is so unusual that Grochmal has filed for a "Gift Marketing System" patent; his commitment to the contributions is so unwavering that Grochmal has crafted a legally-binding company contract that details the arrangement. Vague, hard-to-identify projects are not candidates for GoodWorks donations, according to the contract's provisions. "GoodWorks will only make contributions to non-profits that agree to distribute donations toward identifiable, tangible enhancements within 12 months after the receipt of funds," according to information available on the company Internet web site. Revenue distributions are listed on the site as well: "70 percent of GoodWorks donations will be made in support of education at the local level; the remainder of GoodWorks' charitable donations will be made in equal amounts to the areas of healthcare and safety." "This is a different business model," Grochmal said. "With this contract that is enforceable, people can count on this [donations]." Grochmal has vast experience in insurance and investments, and said that "20 years ago, this would never have occurred to me." But a combination of factors, including becoming a father, realizing what he wanted for his children and conversations with his wife Ann, a Housatonic native who wanted to find ways to help the local area, led him to develop the innovative, unique business model. "Insurance is historically a very profitable industry," he said. From The Ground Up Grochmal initially thought about purchasing an existing insurance company but once he devised the new plan, he decided to build the business from the ground up. The planning process covered about three years and included research, finding investors, and creating business plan details. Grochmal examined companies such as Newman's Own, Tom's Of Maine, and Ben and Jerry's for information and inspiration. "This [idea] took a long time because of all that had to be done," Grochmal said. "I wanted to test the idea in the community." Grochmal spent several months previewing the idea to about 25 area families, and found that the concept was welcomed as a pleasant surprise. Since the insurance costs are about the same as what folks would pay at competing agencies, the "differentiator" was the contributions, and that was what folks found appealing, Grochmal said. Most of those who heard about the concept said that they would likely switch to the GoodWorks firm for insurance needs, he noted. About 20 investors from the United States and Europe put up the funds needed to get the company off the ground, Grochmal said. "Many of the investors were people who had experience in insurance, and they invested their own money," he said. Other investors recognized the company as an engine for giving, he said. A patent is being sought so that the strategy can be protected from unscrupulous individuals who might try to bend the structure to their own advantage. "If we didn't have some control over the method..if other companies got hold of this and there was any fraud, it would reflect on us," Grochmal explained. Grochmal said that he believes the marketing strategy could work with many other products and businesses and those who truly wish to act in a generous and giving manner are welcome to contact him and discuss their interest. Personal, Commercial Services Offered The business premise has drawn a "wonderful reaction" from industry leaders, and a number of insurance carriers have appointed GoodWorks to offer policies. "That is almost unheard of for start-up [insurance] companies," he said. Arbella Insurance Group, Chubb,Drive Insurance [offered by Progressive], Litchfield Mutual, National Grange Mutual, Patrons Insurance Group, St.Paul/Travelers, and The Hartford have authorized GoodWorks to make their products available to individuals, families, and businesses. Personal insurance available through GoodWorks includes homeowners,motor vehicle, condominium, valuable item, mobile home, renters, flood, watercraft, and personal umbrella plans. Commercial insurance options include worker's compensation, property and liability, business owners, builders risk, professional liability, employment practices liability, bonds, excessive liability, and directors and officers liability plans. Policies may be written for anywhere in the Berkshires, he said, and noted that he has acquired some customers from the Springfield area as well as customers based in and around Great Barrington. Growth Expected Grochmal is interested in opening branch offices in other locales and hopes to open at least four new branches this year. Current plans call for branch openings in Connecticut [the company is headquartered in New Canaan, Conn.] and eastern New York. Grochmal said he is interested in speaking those who have experience in the industry and an interest in his company. Customer service and community service are company highlights but Grochmal's vision doesn't end there, he said. Company employees are eligible for "equity shares" of the company. "We want to offer them something for their sweat equity," he said. Grochmal noted that he he wants to launch all company branch offices as start-ups as opposed to buying existing agencies. "We're looking for people who are experienced in the insurance industry," he said. "We aren't looking for companies but we want their employees." Grochmal said he believes the concept has the potential to change the way the insurance industry is perceived and deliver significant contributions to communities. "I think we might have an alternative distribution model for insurance," he said. "I believe that the plan is in the enlightened best interest of the consumer." Additional information about GoodWorks Insurance LLC is available at a www.goodworksinsurance.com Internet web site, or by calling 413-528-5509 or toll-free at 888-528-5509. Susan Bush may be reached via e-mail at suebush@iberkshires.com or at 802-823-9367.

iBerkshires.com Text Ads

Summer Sizzle!

0% APR for new card holders. Apply today at Greylock! Subject to credit approval. Insured by NCUA.

www.greylock.org

RIBCO Supply

Check out our great lineup of Boss Plows, and spreaders. 2 Locations Clarksburg & Pittsfield!

ribcosupply.com

rk MILES Blding Materials

Are You Ready to Update Your Home? Start With rk MILES. 4 Locations (800)670-7433

www.rkmiles.com

If you would like to contribute information on this article, contact us at info@iberkshires.com.

Former Harry's Supermarket Under Construction for Restaurant

By Brittany PolitoiBerkshires Staff
08:30AM / Tuesday, June 09, 2026

PITTSFIELD, Mass. — Construction is underway to transform the former Harry's Supermarket into a restaurant.

Late last month, the Conservation Commission greenlit some tree pruning on the property. New windows and a new door can be seen in the front of the building.

"It's a substantial renovation that's currently underway here," Brent White of White Engineering said, speaking on behalf of the applicant and owner, Huajie Zhu.

A fire gutted the longtime Wahconah Street supermarket in 2023, and the following year, Zhu purchased the property for $460,000 two years ago to build a restaurant with hibachi in the existing footprint of the more than 100-year-old building.

White explained that the project has been ongoing for over a year, and the Community Development Board granted the property a waiver to reduce the minimum required number of parking spaces so that additional spaces aren't needed.

He noted that, looking at the site plan, there is very little room to do so. A mirror will be installed near the sharp turn on Bel Air Avenue to alleviate traffic concerns.

Pruning will be done on trees in the southeast corner of the existing paved parking lot, as a number of branches are hanging over. The new owners also intend to patch, sealcoat, and re-stripe the parking lot.

A fire tore through the building less than an hour after the supermarket closed for the day three years ago. An automatic sprinkler system is required for the new use.