THE CHALLENGE: Running a business well means watching the bottom line. That’s doubly true when you’re running a non-profit. Every dollar spent on the rent, furnishings and, yes, insurance, means fewer dollars for fulfilling your mission. Our client, one of the largest hospices in the Rocky Mountain region, was spending hundreds of thousands of dollars a year on workers’ compensation, liability and other insurance costs when we stepped in as its broker in early 2018. What were all those premium dollars buying it? Was it getting the coverage it needed? Or was it overpaying for no good reason?
OUR SOLUTION: One of our core values revolves around the idea that attention paid to small things can yield big rewards. When we start working with a client, our risk management team conducts a top-to-bottom assessment to make sure the best safety practices are in place and working. Same goes when we review a new client’s existing coverage. It’s not just about whether they have the right policies in place, but also whether their best interests are being represented in conversations between the broker and the insurance company.
THE OUTCOME: The good news for our client was that its all-important workers’ comp experience modification rate, or e-mod, was already dropping. The bad news was that perception hadn’t caught up with reality with its workers’ comp insurer. Our client was stuck, it seemed, in the worst possible rating tier – until we stepped in and started advocating on its behalf, pushing and pressing to persuade the insurer to understand that our client was truly committed to safety and loss control. The result? A rate that was 20% lower. We were then able to save the client another 5% by taking advantage of Colorado’s net reporting rule, which allows an employer to receive a premium discount by eliminating all losses below the deductible it paid on any claims filed. Furthermore, we found a new general liability insurer for our client that set its rate based on the hospice’s bed count and number of patients it saw each year, rather than merely on the size of its workforce. Altogether, our client today is saving more than $100,000 a year on insurance costs – dollars it can now redirect to the care of its patients.
Want to learn more? Contact CCIG Insurance Advisor Jeff Parent at JeffP@thinkccig.com or 720-330 7918.
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