In the world of high-net-worth individuals, insurance needs can be complex and multifaceted. Recently, Cottingham & Butler had the opportunity to assist the founder of a prominent last-mile transportation service in optimizing their personal insurance portfolio. This case study demonstrates how a thorough review and tailored approach can lead to significantly improved coverage and risk management.
The Situation
Our client, a successful entrepreneur in the transportation industry, approached us with a seemingly straightforward request: to remove their personal vehicles, some of which were high value, from their commercial insurance program. However, as our team delved deeper into their overall insurance picture, we uncovered several critical issues:
Absence of Personal Umbrella Policy: The client lacked a crucial layer of protection against potential liabilities.
Underinsurance on Multiple Properties: Several of the client's properties, including personal residences and rentals, were significantly underinsured.
Non-Optimized Claims Reduction Strategy: The existing insurance approach hadn't been structured to minimize the risk of claims, leaving the client exposed to unnecessary financial risks.th minor claims and catastrophic events, while also paying higher premiums than necessary.
Our Approach
Recognizing the complexity of the client's needs, our experts sprang into action. We leveraged our extensive market knowledge and network to craft a comprehensive solution. Our approach focused on:
Consolidating coverage across multiple properties
Introducing robust liability protection
Implementing loss prevention strategies
The Results
Our team successfully negotiated a comprehensive package that addressed all of the client's needs and more:
Comprehensive Property Coverage: We consolidated insurance for all personal and rental properties into a cohesive program. This not only simplified management but also unlocked previously untapped discounts.
$5 Million Umbrella Policy: We introduced a substantial umbrella policy, providing an additional $5 million in liability coverage. This extra layer of protection is crucial for high-net-worth individuals who may be at greater risk of lawsuits.
Loss Prevention Optimization: We identified and implemented various loss prevention measures. These not only reduced the likelihood of claims but also qualified the client for additional discounts.
Customized Vehicle Coverage: We successfully transitioned the client's personal vehicles, including high-value cars, off the commercial program and onto a more appropriate personal auto policy.
Action Plan for Claims Reduction: We provided the client with a detailed action plan designed to further reduce the chance of claims. This proactive approach not only offers greater peace of mind but also translates into additional premium savings.
The Outcome: Enhanced Protection at Lower Costs
By taking a holistic view of the client's insurance needs, we were able to transform a simple request into a comprehensive risk management solution. The client now enjoys:
Consolidated and optimized property coverage
Robust liability protection with a $5 million umbrella policy
Appropriate coverage for high-value personal vehicles
A proactive claims reduction strategy
Multiple sources of premium savings through consolidation and loss prevention
This case exemplifies Cottingham & Butler’s commitment to thorough analysis, tailored solutions, and ongoing risk management. By addressing not just the immediate need but the entire risk landscape, we provided our client with both enhanced protection and optimized insurance costs.