Case Studies

Business Insurance Case Studies

Case Study #1

Hilo, Hawaii ~ Builders Risk

Problem

  • Secure builders risk policy in Hilo, HI
  • Obtain necessary coverages, fire, flood, earthquake, wind/hurricane & terrorism
  • Difficultly securing said coverages in HI with an admitted (licensed) insurance company
  • Obtain lower deductible to avoid massive out of pocket expenses if claim occurs
  • Insured received quote from another agency for 2% or 100k minimum deductible for Earthquake & Hurricane, 50k for Flood

Solution

  • After searching the market and obtaining quotes from several carriers, found an admitted insurance company that offered said coverages
  • Provided a 5k deductible for fire, 2% or 25k minimum deductible for Hurricane and Flood and a 5% or 25k minimum for Earthquake

Outcome

  • Insured accepted quote due to competitive rate, acceptable deductibles, solid carrier financials and admitted status in HI

Case Study #2

Orem, Utah ~ Manufacturing & Commercial Real Estate

Problem

  • 3 businesses and 7 properties on 14 separate policies
  • Policies were not structured correctly & not consolidated
  • Name insureds not correct on all policies
  • Blanketed coverage not being used on commercial properties where applicable
  • Low deductibles on all policies increasing overall premiums

Solution

  • Restructured the entire insurance portfolio
  • Consolidated all buildings owned by the same entity onto one policy
  • Blanketed buildings offering substantially increased coverage
  • Increased deductibles to offset premium

Outcome

  • Overall cost decreased by 30%
  • Insured was very pleased with suggestions & improvements
  • Reduced policies to 7 instead of 14, with only 5 invoices all renewing the same month

Case Study #3

Houston,  Texas ~ Medical Facility

Problem

  • Increasing rates year after year left client with diminishing profits
  • Client had multiple companies that were incorrectly combined onto one policy offering no coverage in the event of a claim
  • Extremely low auto liability limits not offering sufficient protection for a business of their size

Solution

  • Offered policy correctly breaking out the different companies onto the separate and distinct policies
  • Increased auto liability limit by 1,000%

Outcome

  • Client obtained proper coverage adequately insuring the business from potential claims
  • Reduced overall premium by 35%
  • 3 months after moving coverage the insured was in a bad vehicle accident which exceeded $300,000 in bodily injury and property damage. With their old policy they would have paid over $250,000 out of pocket. With their new policy they only paid their $1,000 deductible.

Case Study #4

Anaheim, California ~ Medical Retail

Problem

  • Incorrect classifications resulted in an annual workers compensation premium of $60,000
  • Documentation showed the majority of employees classified under the class code with the highest rate
  • Workers compensation audit found additional payroll not reported on the policy, resulting in additional premium due

Solution

  • Reviewed the payroll records of all employees to determine proper classification
  • Obtained a detailed description of their operations and discovered that many of the employees had been incorrectly classified under the highest rated workers compensation class code
  • We disputed the discrepancies with the past and present insurance carriers, reclassifying the employees to the correct class code

Outcome

  • The dispute was accepted by the insurance companies
  • The premium was adjusted to $24,000 on the previous and existing policy, 40% less than what he had been paying
  • The additional premium due on the audit was also waived because of the payroll correction

Case Study # 5

Blanding, Utah ~ Pharmacy

Problem

  • After auditing our client initially we found that he had no coverage for the building he owned in a different entity
  • Client was not properly insured, was operating as a Pharmacy without Druggist Professional Liability

Solution

  • Provided coverage for the building under the separate entity that owns it
  • Included Druggist Professional Liability which offers coverage in case an error occurs while fulfilling prescriptions

Outcome

  • Client is now insured properly and can do business with peace of mind that he is protected correctly