Matching your Growing Needs

Industry: Box Corrugator

Exposure: $15 million

Coverage Benefit: Corrected Limits and Added Employment Practices Coverage

Savings: 30%

Insurance Problem

A North Texas box company had grown significantly over ten years in both revenue and employee size but had not made any material changes to their property and casualty insurance to account for the expansion. As a result, they were underinsured in several areas and did not have insurance necessary to protect their new exposures.

Risk Management Solution

We first analyzed the insurance policies to uncover where there were holes in coverage, inadequate limits of insurance and also ways to reduce overall insurance expense. We determined that they had not accounted for the growth in sales from a business income perspective. They still had the same limit as they did ten years earlier when they last evaluated their policies. In the event of a total loss to the plant, the company would have been vastly underinsured for the loss of earnings while the business was interrupted. We also discovered that the company had grown significantly in the size of the staff but had not implemented an Employee Practices Liability policy. We informed them of the rising number of lawsuits over the past decade claiming wrongful termination, age discrimination, and sexual harassment and of the costs associated with defending these claims even when they were unfounded.

Results

We were able to save them 30% on insurance premium while implementing an Employee Practices Liability policy and increasing their business income limit to adequately protect them in the event of a total loss to the manufacturing plant.