But a Member is our Agent
Industry: Private Golf Course Exposure: $6 million
Coverage Benefit: Added Employment Practices Liability and Removed Key Exclusions
Savings: $63,000 or 57%
Swingle Collins & Associates was referred to an exclusive DFW golf course because of our experience providing risk management to other courses and clubs. The controller agreed to meet with us, but she wanted to make sure we knew that a member who was also a very successful insurance agent had handled their insurance for years. The controller agreed to integrity in the review process and that the current agent would not get to review our proposal.
Risk Management Solution:
After analyzing the policies and acquiring the relevant information regarding the assets and operations of the club, it was revealed that several pieces of vital coverage had been omitted or limited. As in most private clubs, this one had a restaurant operation. Unfortunately, the current policy excluded coverage for Food Borne Illness, which would have provided coverage should any guest get sick after dining at their club. The policy also provided an endorsement for Limited Abuse and Molestation Coverage. Unfortunately, the coverage excluded, Directed or Knowingly Allowed Acts, Failure to Report, Known History, and Sexual Harassment.. Another general liability endorsement on their current policy was Tentative Rate, which allows the insuring company the ability to adjust the premium during the policy period “once they develop the actual rate.” The problem for the club is the proposed cost of insurance may be changed during the policy period. Lastly, the pricing for coverage had stayed flat over the years even though the market for golf courses had been falling.
Our proposal, removed the exclusion for Food Borne Illness, provided Employment Practice Liability and did not have the Tentative Rate endorsement. The deficiencies of coverage were resolved to cover the true risk of this insured and to satisfy the risk management philosophy of the club, its directors, employees and members. We were also able to negotiate a considerable savings while providing better coverage. The prior year the golf club paid $115,000 in premium. After accepting our proposal and hiring Swingle Collins, the insured will pay $66,000.