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New Business, New Risk
NYC
Private Club
Real Estate Management Company
NY Plumbing Contractor
Real Estate Investment Firm
New Business, New Risk
Situation
& Issue
A large
Real Estate client of The ALS Group notified us that they
were starting an office cleaning business and needed
coverage within two weeks. The new company would have close
to 200 employees (gained through an arrangement with a
competitor).
After
determining that the office cleaning exposure did not fit
the client’s current risk profile and insurance program, The
ALS Group went into action to procure a separate insurance
plan to ensure all needed coverage was obtained in time for
the business to start operations.
The ALS
Solution
The ALS
Group quickly assessed the client’s needs and worked to
procure Package (General Liability and Property), Workers’
Compensation, Umbrella, and Crime insurance policies. Each
step of the placement process needed to be completed within
a narrow time frame.
-
A
broker with experience in this industry was identified
to coordinate the placement of insurance policies.
-
Policies providing broad coverage at very competitive
premiums were placed with an A-rated carrier.
-
The
client was able to begin business on time and fully
covered.
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NYC Private Club
Situation
& Issue
A large
NYC private club invited The ALS Group to review and analyze
its insurance program for coverage and pricing adequacy.
The club is located in an historic building and contains a
large Fine Arts collection.
The ALS
Group performed an assessment of the club’s current
insurance and held discussions with the client to obtain
educated insight into the Fine Arts exposure. The review
revealed the current insurance program to be overpriced and
that it provided inadequate coverage for the Fine Arts
exposure.
The ALS
Solution
In order
to reduce costs for the club’s coverage, The ALS Group
worked with the client and broker to successfully produce
the following changes:
-
Coverage was placed into a large Real Estate Risk
Purchasing Group to reduce costs on the club’s existing
coverage types.
-
The
Fine Arts were placed into a separate Fine Arts policy
which provided the proper coverage and valuation to
handle the exposure.
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The
club received better coverage while realizing a 25%
($60,000) savings over its former premium.
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Real Estate Management Company
Situation/Issue
A real estate management company with over
3,800 units was having issues with claims. They were being
brought into lawsuits that involved vendors or contractors,
as well as experiencing average claims resolution
timeframes. This was negatively impacting their claims
history and increasing their premiums upon renewal.
The ALS
Solution
The ALS Group immediately addressed the
indemnification requirements of vendors and contractors so
the Company would be indemnified by the vendors going
forward. The client’s carrier needed to be protected from
having to defend against suits arising out of vendor
activity, and instead transfer responsibility to the
vendor’s insurance.
-
A
Company-specific indemnification agreement and
Certificate of Insurance tracking program was produced.
Now, each vendor providing services is required to sign
the indemnification and provide valid certificates prior
to performing services.
-
The
ALS Group created an Incident Reporting form that can be
used at the time of an accident, allowing the facts of
the case to be recorded immediately.
-
The
ALS Group also began holding quarterly claims review
meetings with the carrier’s claims administrators.
Losses were tracked closely, and open claims are
aggressively being addressed.
-
The
Company now has a better handle on claims
administration, reporting and tracking, making the
company itself more efficient.
- The ALS
Group has successfully reduced the outstanding reserves by
over $100K, giving the client a more modest premium upon
renewal.
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NY Plumbing Contractor
Situation
& Issue
The ALS Group is engaged by one of the
largest Plumbers in New York City, who has been in business
for well over twenty-five years. Our role is to support the
client in an out-sourced Risk Manager capacity. As they
have grown, so have their exposures and propensity for
General Liability claims. We wanted to take pro-active,
hands on approach in getting our arms around the Liability.
The ALS
Solution
There had been no movement by the adjuster or
broker on any of the claims for years. Many of the claims
had been open for years with high reserves, most of which
there was little or no information on their status or
progress thus far. The initial claims review meeting proved
to be successful as we were able to identify claims we felt
were erroneous, and reserves we felt were too high.
However, there was still much more information to be
uncovered on each claim.
We scheduled a follow-up claims review
meeting, and worked with the broker and adjusters to uncover
additional information, reduce reserves and close claims.
Upon the arrival of our follow-up meeting we were able to
achieve the following:
-
Close ten of the twenty-seven open
claims
-
Reduce the reserves by $355,000
-
Decrease the total incurred figure by
$550,000
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Real Estate Investment Firm
Situation
& Issue
A NJ Real Estate investment firm with over 60
properties and approximately 3000 units engaged The ALS
Group to review their current insurance portfolio and to
provide strategic direction on their risk management
program.
The ALS Group identified inefficiencies in
cost and coverage in their current insurance program as well
as finding many risks were under insured and there were
exclusions within the existing policies. The firm was
unaware of these exclusions.
The ALS
Solution
The ALS team gathered an extensive amount of
risk and underwriting information on the company. The Team
became intimately knowledgeable of the Firm’s operation and
risk profile. The ALS Group put into place an aggressive
timetable and expectations. The following results were
achieved:
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The
insurance program was consolidated from eleven policies
to three creating ease of administration
-
Coverage was improved significantly and limits were
increased where appropriate
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An
inferior rated insurer was replaced with a higher rated
carrier
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Premiums were reduced by 40% resulting in a savings of
over $400,000
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