Case Study: Transforming Insurance Coverage While Cutting Costs in Manufacturing
Client Overview:
A mid-sized manufacturing corporation, working with a large national insurance broker, faced a critical gap in coverage and escalating insurance premiums. Amid a hardening property market, their coverage was restricted to the Excess & Surplus (E&S) market—typically reserved for higher-risk accounts with less favorable terms and inflated premiums. With rising costs and limited options, they needed a more comprehensive and strategic solution.
Challenge:
The client’s existing policy posed significant challenges, including high property deductibles of $100K, limited coverage, and restrictive terms. Most critically, their property coverage fell drastically short, insuring only $5 million against an exposure exceeding $25 million. With mounting budget pressures, they needed a solution that would not only enhance their protection but also drive down costs.
Solutions and Results:
Choosing to work with me and WMW Insurance Services for our expertise, market access, and problem-solving capabilities was a pivotal decision. The ideal solution emerged through our semi-exclusive insurance program tailored for manufacturers. By leveraging deep industry knowledge, strategic underwriting negotiations, and conducting a comprehensive risk assessment, we identified a prime opportunity to enhance the client’s insurance coverage and reduce their overall insurance cost. Key actions included:
Coverage Forms Analysis: I identified manuscript wording on their existing general liability policy granting coverage for specific medical devices and was able to include this coverage on their new policy.
Policy Restructuring: Adjusted coverage limits and deductibles to align with actual risk exposure.
Property Limits Increased by 400%.
Deductibles Decreased by 75%.
Budget Reduced by 33%. $375,000 to $250,000.
Customized Policy: Transitioned the property coverage from the restrictive E&S market to a standard insurance market. Their new policy provided more favorable conditions, improved payout structures, and no surcharges or broker fees. Also, the program is billed directly to the insured, avoiding costly premium finance charges.
Conclusion:
This case illustrates an excellent result. If you're a qualified manufacturer whose property coverage is currently stuck in the E&S insurance market, this Program presents a significant opportunity for cost savings AND coverage enhancement. By taking a proactive and informed approach, this manufacturing client not only secured better financial stability but also gained peace of mind, knowing their risks were more effectively managed with comprehensive coverage.
