What Can Swingle Collins do Better than a National Broker?
Industry: Medical Staffing Exposure: $40 million
Coverage Benefit: Improved Professional Liability Coverage
The CFO took a meeting with Swingle Collins & Associates because of the breadth of our experience in the staffing industry. The company was coming into tighter financial circumstances because of the recession and was looking to cut expenses wherever possible. The CFO saw the value in our reviewing their policies, but the President and the Chairman of the Board were unsure if we could provide any improvements. After all, they were working with a national broker known for work in the staffing industry.
After a half hour first visit where Swingle Collins received updated insurance information, we were able to review the company’s current property and casualty insurance. The company’s largest premium was their workers compensation, which had an inflated price compared to our clients working with that same carrier. Some states had rates that were 50% above what our clients were charged. The next problem was that the company’s hired & non-owned auto policy required the company to pull a Motor Vehicle Record on each employee when they were hired. The company also had to recertify the MVR annually for the coverage to apply. This proposed a documentation nightmare for the company and potentially left a claim uninsured if the documentation was done incorrectly. The staffing agency’s professional policy was adequately priced, but the company was not receiving all the coverages we were able to negotiate for our clients.
Risk Management Solution:
Swingle Collins & Associates met with the CFO, President and Board of Directors and presented how we would handle their insurance differently. We were able to lower the cost of their workers compensation insurance from $650,000 to $325,000 based on the same payroll. Swingle Collins also obtained a quote for the company’s hired & non-owned auto insurance that did not require the company to pull MVR’s. We were able to lower the auto premium from $53,000 to $2,000. The Professional Liability policy was improved to add a blanket waiver of subrogation, to increase non-renewal notice from 30 to 60 days and to add final adjudication wording for dishonest and fraudulent claims.
The management team was appreciative of our work and surprised that a company with national resources was not making sure their premiums were keeping up with the market changes. They hired Swingle Collins to manage the staffing company’s insurance policies, in which they enjoyed a $375,000 savings the first year. Over the next few years Swingle Collins was able to lower the company’s premium by 50%.