Manufacturing & Industrial

Manufacturing & Distribution Company Saves Millions on its Risk Insurance Over Seven Years

A market-leading consumer products manufacturer and distributor with revenues totaling over $500 million, operating over 200 locations, and a fleet of over 1,500 power units was preparing for an IPO. The company originally retained UIC Inc. on the primary basis of implementing a public directors and officers program to confirm adequate insurance levels for proper asset protection to withstand capital market scrutiny. The assignment then transitioned into a review of their entire property and casualty program.

OUR SOLUTION

UIC Inc. was retained to provide an independent risk management audit and was given complete access to all requested information. Within several days, it was able to provide a high-level report on the company’s current insurance program, identifying salient coverage weaknesses and gaps, and developing a strategy that, if properly executed, would meet all agreed-upon goals.

With UIC Inc.'s involvement, the following results were achieved

1. Annual premium savings of greater than $3M over the expiring program, and a cumulative savings of over $20M in a seven-year period.
2. Negotiated the reduction of outstanding collateral while establishing favorable and concrete loss development factors for the future draw of collateral, preventing insurers from holding on to collateral for long periods.
3. Doubled primary automobile limits at a lower cost to provide a greater cushion against umbrella liability pierces, thus, in combination, generating better protection at a muchlower cost.
4. The General Liability and Pollution Legal Liability policies were renewed with, respectively, 20 additional coverage endorsements to better protect the company from future third-party liability and contractually assumed liability.
5. Negotiated and bound first-class D&O coverage for the IPO, inclusive of all of the industry-leading coverage enhancements.