The Situation
Our prospective client is an agricultural design-build general contractor who had been with their broker for 20+ years. After years of cold calls and requests to meet, the president of the company invited Cottingham & Butler in to review their program. He felt it was on auto-pilot and that a fresh perspective “would not be a bad thing.”
Cottingham & Butler performed a comprehensive review of the existing Risk Management Program and uncovered the following:
Ten insurance carriers had never received a submission for this insured (discussed with twelve carriers).
$75,000 worth of annual opportunity was found in Captive Insurance; $100,000 of annual opportunity found in a Retrospective plan.
20+ program deficiencies were found within the current policies, most notably within the Professional/Pollution policy that contained an exclusion that removed coverage for "Design Services," despite that being the client's niche.
Several critical recommendations were made to the subcontract agreement surrounding the indemnification and insurance requirements.
Our Results
A thorough exploration of the carrier marketplace resulted in a premium reduction of $126,355 (25%). Program design options were negotiated, including captive insurance, retrospective plan, and dividend options.
All program deficiencies were corrected at no additional premium. A customized safety service plan was created and implemented.