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Lowered property premium by 28% –saving client $675,000

The Situation

A leading Milk Cooperative in the U.S., responsible for marketing over 5 billion pounds of milk annually, faced a daunting predicament. Their insurance program was subject to an unprecedented triple-digit rate increase, accompanied by a drastic reduction in coverage limits. The stakes were high, and decisive action was imperative to safeguard the cooperative's interests.

Our Results

In response to the pressing challenges, Cottingham & Butler swiftly mobilized its specialized Food & Agribusiness platform. With a keen understanding of the industry's intricacies, we embarked on a strategic intervention aimed at optimizing coverage and containing costs without compromising on protection. Rate and Premium Savings

  • Mid-term Cancel Re-write: Through adept restructuring of the property program, we orchestrated a mid-term cancel re-write that yielded substantial savings. The property premium was slashed by an impressive $675,000, resulting in a remarkable 28% reduction.

Coverage Enhancements

  • Expanded Property Limits: By augmenting the total property limit by $50 million, we bolstered the cooperative's resilience against unforeseen contingencies.

  • Elevated Flood & Quake Protection: Recognizing the significance of comprehensive coverage, we substantially raised the Flood & Quake limits from $10 million to $150 million.

  • Removal of Detrimental Coverages: Several restrictive coverages, including the burdensome 1/12th limit of indemnity attached to the business, were judiciously eliminated to streamline the insurance framework.

“After a painful insurance renewal, we embarked on a quest to find a new broker who could partner with us, to not only right the program in the short-term, but provide creative and long-term solutions into the future. After meeting with Cottingham & Butler, the choice was clear. They stood above the rest due to their partnership philosophy, strong focus on safety and risk management, and extensive knowledge and expertise from their passionate team.

Safety Management

  • Innovative Technological Integration: Introducing our proprietary fire and risk technology platform, we revolutionized safety management protocols. This cutting-edge solution proved instrumental in mitigating the frequency and severity of unique operational risks.

  • Streamlined Safety Processes: Leveraging the expertise of Cottingham & Butler's in-house safety team, we optimized safety protocols and eliminated the dependency on a third-party safety company. This strategic realignment resulted in annual savings of $60,000, enhancing operational efficiency.

Through meticulous analysis and strategic interventions, Cottingham & Butler successfully navigated the complex landscape of insurance challenges faced by the Milk Cooperative. Our tailored solutions not only delivered substantial cost savings but also fortified the cooperative's risk management framework, ensuring long-term sustainability and resilience in an ever-evolving industry landscape.


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