A major national construction company with annual revenues in excess of $250 million engaged The Lion Partnership (TLP) to assist in a comprehensive review of their insurance arrangements as part of a broader corporate governance review.
The review process included detailed policy wording reviews on their major classes of insurance, which identified numerous weaknesses and restrictive policy conditions that could have exposed the organisation to substantial financial and reputable damage in the event of a major loss that was not appropriately covered.
Following completion of the initial wording review, TLP managed a complete tender exercise for the provision of insurance broking services involving multiple brokers with extensive expertise in the Construction space, ranging from major global broking firms to small, privately owned local broking houses that specialised in the Construction industry.
The client subsequently opted to reappoint their incumbent broker for a further twelve months subject to the achievement of numerous pre-agreed key performance indicators in line with the clients specific requirements.
Assistance was also provided to develop a register of the organisations key risks along with an insurable risk gap analysis to ensure the organisations insurable exposures had been effectively transferred to the market.
Overall, the entire process helped the client secure major coverage enhancements under their insurance program combined with premium savings in excess of 20%, both of which were achieved without the need to change insurers. This allowed the client to enjoy the long-term benefits of insurer continuity while providing the Board and Senior Management with the Corporate Governance comfort that preempted the review.