Rebuilding a Risk Management Culture

Industry: Contract Life-Sciences Manufacturer Exposure: $50 million

Coverage Benefit: Health and Safety Risk Management Consulting

Savings: $100,000

Insurance Problem

Prior to its relationship with Swingle Collins & Associates, the insured had multiple carriers with five different expiration dates and only one named insured listed on the policy. This resulted in multiple entities not being covered, including all of the real estate assets and two manufacturing entities. All of the products coverage was through non-admitted insurance carriers, so it contained reductions in coverage like limited reporting provisions, delay in delivery, limited contractual liability and punitive damage exclusions. All property policies contained co-insurance and policy warranties. This company, which was experiencing 100% year over year growth, hired us to put a risk-management program in place and make sure they had the coverage they needed.

Risk Management Solution

Swingle Collins & Associates began the risk-management process by interviewing key groups inside the company including: warehouse managers, owners, customer service reps, manufacturing process engineers and scientists. During this process, we discovered that the insured was a GMP-certified facility with many best-practices controls in place. We also discovered 78% of job-safety accidents had occurred at one site. The site claimed 46% of lost accident days and more than double the absence rate of the group average. The site contained no variances in size, operations or employee number. The problem essentially stemmed from a lack of leadership in health and safety at senior and line management levels, which was evident in their ineffective approach to risk assessment and accident investigation and lack of understanding as to the financial impact of accidents and claims to the business. The insured took immediate and lasting action on our six recommendations for improvement at that site. Swingle Collins & Associates then brought in two carriers to review the company’s pristine safety metrics. A carrier that typically did not do this line of work wrote all lines on one date covering all entities as a result of the loss control visit.

Results

The company reduced overall business insurance expense by 45%, and gained coverage for all property and manufactured products. Our biggest success was the safety awareness education we gave to senior management. Of course, saving them over $100,000 premium per year is great, too.