Click headers for detailed case studies:
Manufacturer of Commercial Coffee Brewing Equipment
Workers' Compensation claims had spiraled out of control. The company was experiencing far too many claims, and the associated expenses were costing far too much. As a result, premiums paid for Workers' Compensation coverage had increased dramatically, substantially impacting the company's profitability.
Client Description: This California company is a family-run business well-known for its full line of coffee, tea, specialty beverage dispensers and brewing equipment.
SCM's Solutions: SCM employed a two-pronged approach to reduce the frequency of claims and the severity of the accidents:
- SCM's Risk Control team worked closely with the company's safety personnel to implement several innovative and cost effective measures to improve safety, thus preventing accidents from happening in the first place and increasing productivity.
- SCM's Claims Administration department worked with the company's HR department to minimize reserves on existing open claims and expedite closure at the lowest possible amounts.
Client Benefits: Focused attention to claims management and safety practices paid off for the company. Within a year or two, its experience modification dropped from 234% to well below 100%, translating into substantial savings and significantly increasing profits. The company has also benefited from improvements in claims management, a reduction in the number of claims and a substantial reduction in premiums.
Additionally, the company's work environment is safer, fostering higher morale among team members. With management spending less time on insurance issues, they are able to build stronger relationships with their clients while also keeping a closer eye on the bottom line.
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Trucking, Storage and Warehousing Services Company
The company's workers' compensation claims were excessive. With a workers' compensation experience modification in the 170% range, the client's profitability was suffering. While the employer had attempted to address these losses through safety meetings, training and incentive programs, they were not achieving the desired results.
Client Description: The company is a provider of long haul trucking, storage and warehousing services. It operates a 15+ acre yard with an 110,000 square foot warehouse.
SCM's Solutions: SCM undertook the challenge of understanding the company's operations and safety efforts to discern why its program was not impacting loss frequency and costs. After exhausting the customary approaches, SCM conducted a confidential interview-style survey of employees to assess their views of work and the company's safety efforts.
The company's management team had invested a great amount of time and effort to identify hazards and reduce the employees' exposure to loss sources. Surprisingly, however, the results of our survey disclosed that employees had little or no awareness that the company even had a safety program.
Armed with that knowledge, SCM immediately focused on reinforcing not only training, but reminding employees why the training was being conducted -- for safety.
Client Benefits: The company saved over $500,000 in annual premiums. Within three years of working with SCM, the company reduced its workers' compensation experience modification from approximately 170% to 100%.
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National Real Estate Investment Company
As a result of significant growth and a number of acquisitions, the company needed several insurance policies consolidated. Its previous insurance broker was unable to resolve this for the company. The company turned to SCM due to its reputation for long-standing carrier relationships within the industry.
Client Description: The company is one of the nation's largest privately-held commercial real estate investment companies. It acquires, owns, manages and leases Class A office buildings, luxury resort/hotel properties and high-quality industrial and retail facilities in major markets throughout the United States.
SCM's Solutions: After careful review, SCM discovered that the company's program price was exceedingly high. SCM successfully consolidated several policies into one comprehensive program, analyzing and negotiating the various options for the company on its behalf.
Client Benefits: The company's new insurance program saved it nearly $400,000 in annual premiums. Additionally, timeliness of execution, responsiveness, and better coverage improved its leverage with its prospective lenders. When given the opportunity to make even larger acquisitions, the company was prepared.
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Privately-held Real Estate Company
The company had made numerous acquisitions, including community shopping centers, power centers and multi-tenant industrial properties, all of which were covered by separate policies. As a result, policy renewal was an administrative nightmare for the company.
Client Description: One of the nation's leading privately-held real estate companies, the company specializes in the acquisition, development and management of commercial and multi-family investment properties.
SCM's Solutions: Within 30 days, SCM successfully consolidated all policies while broadening the company's coverage. Favorable pricing and the underwriting process were facilitated by our longstanding carrier relationships and our knowledge of benchmark standards within the industry. SCM also worked closely with the company's team to create efficiency in the administration of its insurance coverages and polices, including utilization of SCM's innovative billing system with combined invoices in multiple billing cycles.
Client Benefits: The company saved over $500,000 in annual premiums through SCM's successful implementation of a large, master insurance program. SCM's recommended procedures and processes increased the company's limits while lowering their overall premium.
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