From Six Programs to One: A Contractor's Path to Better Coverage at Lower Cost
- Cottingham & Butler
- 49 minutes ago
- 2 min read
Discover how Cottingham & Butler helped this family of street and road construction companies achieve a consolidated program with centralized practices to take advantage of the anticipated long-term ROI.
Key Wins
The Situation
One of the largest street and road contractors in the Midwest has historically been operating its entities with full autonomy and completely independently as it pertains to insurance and risk management processes and decisions. There was an apparent opportunity for economies of scale and carrier/program buying power they were not taking advantage of.
Why They Needed Change
Six commonly owned operating entities were buying six separate insurance programs with 16+ insurance companies and being represented by multiple brokerage firms.
Each entity was operating with full autonomy and completely independently of each other.
The organization was operating without unified risk management standards, resulting in fragmented philosophies and inconsistent decision-making across business units.
Significant inconsistency and opportunity in program structure, coverage forms, limits purchased, retentions, property valuations and more.
Safety operations, claims handling, and insurance/contract mechanisms were frequently misaligned, creating both vulnerabilities and strategic opportunities.
Anticipated non-renewals on two of the operating entities
The Cottingham & Butler Approach
Strategic Program & Coverage Optimization
Successfully consolidated main Property & Casualty Insurance Programs with 1 insurance company to take advantage of economies of scale and buying power
Secured a consolidated large deductible for casualty lines for increased upside savings potential.
Secured a $50M+ increase in property coverage limits.
Future anticipated long-term cost savings of $2M+
Integrated Safety & Claims Services
Contributed to the integration of standardized procedures, programs, and processes.
Implemented customized safety trainings and consulting service plan.
Implemented centralized claim intake, management, and root cause investigation practices.
Negotiated special claims handling procedures with the carrier partner for prioritized claims handling and better outcomes.
Implemented ongoing claims advocacy and consulting service plan.
Contractual Risk Transfer
Identified and corrected numerous vulnerabilities for transferring 3rd party risk.
Contributed to bolstering and integrating standardized contractual risk practices and agreements including subcontractor, hired hauler, flagger and temporary staffing agreements.
Implemented ongoing contractual risk transfer
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