Dealing with a Location Change

Industry: Wholesale Interior D

Exposure: $30 million

Coverage Benefit: Tripled Property Coverage and Added Flood Coverage

Insurance Problem

A wholesale product company moved its distribution center from Dallas to a manufacturing plant in West Texas. As a result, a huge majority of the company’s products and revenue now ran through this one location in a flood zone.

Risk Management Solution

Swingle Collins & Associates discussed the possible ramifications of a major property or business income loss at the West Texas location, we more than tripled the property coverage to match the increased values there and then added flood coverage while keeping the rate in line with the previous coverage. Even though the national flood insurance program does not provide business income coverage, we were able to obtain an excess flood policy with the desired limit and lower the deductible to a reasonable level.

Results

The company increased property coverage at its locations to match the redistribution of products and added much needed flood property and business income coverage. The owner and investors were happy to know that even with the bulk of their manufacturing and product distribution at one location, they had exactly the commercial insurance they needed.