Old Rates Meant Paying Too Much
Industry: Printing Exposure: $17 million
Coverage Benefit: Enhanced Property and Professional Liability Coverage
A local printing company had been in business for over 100 years and had been insured by the same agent for the last 17 years. For many reasons, the owners of this printing company had come to rely on and trust their agent, but unfortunately the agent was no longer having to prove his worth. The CFO was introduced to a Swingle Collins & Associates agent after reading an article in which Swingle Collins had been named Best Practice Agency in the U.S.
One of the things the CFO asked was, “How do I know I am getting the best price and coverage?” The agent wasn’t providing him enough information each year to help him realize how his business insurance decisions were made. Instead, the agent would show up a week or so before renewal, give him numbers compared to last year and ask for the OK to move forward.
Risk Management Solution
Swingle Collins gained the information to analyze the assets and liabilities of the insured and put them on spreadsheets and forms that allowed the insured to objectively understand all his assets and liabilities. The rates for insurance were provided, not just premium, and the insured was educated as to how the underwriting companies determine risk and establish rates. Most business owners and executive have the background and education to understand these deeper issues regarding insurance and risk, if they are given the information.
Finally, the decision makers were given an understanding of how their work in their specific business affected rates and how they were charged for insurance. This understanding enabled them to make business decisions that would directly impact their ability to reduce expenses. Additionally, after hiring Swingle Collins as their insurance agency, their cost of insurance went from $137,000 to $103,000 in premium for the first year. More importantly to the insured, he finally had the tools to make risk management decisions that positively affected his business.