Retailer Updates Coverage and Realizes Reductions
Customer Challenge:
ABC Retailer is a regional chain with more than 20 franchise locations. ABC’s last renewal saw a significant price increase due to a change in the insurance market cycle. The company’s CFO was frustrated when his current broker delivered a $75,000 (35%) price increase three days prior to its renewal. For the previous five years, ABC’s premiums had remained stable and had even been reduced by 15 percent, despite several substantial customer slip/fall and sprain/strain workers’ compensation losses.
Additionally, ABC was not keeping pace with emerging trends in the insurance marketplace. No new policies had been added to its program in more than eight years.
The Liberty Advantage Solution:
ABC’s CFO had always been comfortable with his current agent, although he was upset with the renewal outcome just two months prior, so when Liberty contacted him to inquire about the opportunity to look at their policies, he reluctantly agreed to meet with the Liberty team. Our team explained Liberty’s unique approach to proactive risk management. As a risk advisor, it’s our job not just to finance through an insurance policy, but to address the many areas of risk for our customers. Our goal was to change the way the insurance companies looked at ABC Retailer.
At our request for analysis, ABC provided our team with full access to its current insurance program, policies, and loss information. So that we could really understand all aspects of ABC’s needs, we conducted in-depth interviews with additional members of the management team regarding policy and procedure details. We reviewed a detailed approach to the upcoming renewal and quoting process while establishing a comprehensive service plan.
Outcome:
Three months prior to its renewal date, the Liberty team was able to explain how all of these suggestions and assistance could be provided at no additional cost to ABC. In fact, we were able to outline a plan that would likely drop ABC’s insurance spend by 10 to 15 percent over a three-year period. We also suggested additional policies with appropriate deductibles to cover exposures such as EEOC suits from disgruntled employees, along with cyber exposure coverage for online credit card transactions.
The Liberty Advantage is truly a win-win for customers. In the case of ABC and many other customers, insurance company commissions cover the costs 90 percent of the time. Our team always explains the ROI potential, if additional fees are required.
