Industry – Construction
Category – Insurance
Category Spend – $800,000
Client Savings – 32%
Construction companies, by nature of the occupation, face massive liability risks, and, if not carefully monitored, may threaten the company’s very existence.
The company’s CEO and CFO approached Expense Reduction Analysts to conduct an insurance review for reassurance that their current risk management and risk transfer (insurance) programs are sound.
In this case, the broker was the agent of the insurers but provided very little Risk Management assistance despite the wealth of knowledge at their disposal.
This had a spiralling effect on the coverages in place, as minimal advice was provided regarding the gaps in coverage and exposures faced.
As the company received minimal advice, it was found that several major business activities undertaken had even been excluded under their insurance program structure.
The ERA review process allowed the client to select a broker with a transparent remuneration structure, unbiased placement process, and invaluable Risk Management resources to assist in the reduction of the organisation’s total cost of all risks.
Gaps in coverage and advocacy issues removed through ERA’s unique structured review process secured savings of 32% in insurance costs.
Further, by proposal defining the scope of business activities, ERA ensured that the insurance policy appropriately covered the company.