Case Study: Wholesale Distribution
A large wholesaler with multiple distribution centers met with Underwriters Group to see about retaining them for risk management services. This particular organization had been in business over several years, yet had never been questioned about how the organization was managing their day to day risk and, in turn, keeping their overall costs minimized.
Action/Strategy:
After going through the Risk Reduction Workshop, it was discovered that the distribution center buildings were undervalued and significantly underinsured with their previous, traditional insurance agent. In addition, several areas of concern were identified as a result of the TCOR analysis (total cost of risk), which is a standard part of the risk reduction process. Issues identified included the need for a disaster recovery plan for the business, assistance in better defining the client's hiring processes, and better education and resources for managing their fleet of vehicles.
Result:
Underwriters Group contracted with the wholesaler for all aspects of their insurance and risk management services. Values and limits were updated for the business and all identified needs were addressed accordingly. Their risk has been managed and they are now more attractive to the insurance market and have reduced insurance premiums.