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Overlapping Programs and Gaps in Coverage – A Kapnick Case Study

The following is a case study based on real Kapnick clients.

A developer specializing in commercial and residential properties had a long-time relationship with two separate insurance brokerages—one who provided their Employee Benefits and Private Risk Management and one who provided their Property & Casualty insurance. Unfortunately, this caused multiple issues, including overlapping programs and gaps in coverage. Fortunately, Kapnick was able to provide a holistic approach to provide innovative, integrated remedies.

Their issues and Kapnick’s solutions are outlined below:


  • Inadequate personal liability limits
  • Insurance program included multiple effective dates & insurers
  • Overlapping & gaps in coverage
  • Uninsured assets & asset protection vehicles
  • Deductible dysfunction

Kapnick’s Solution

  • Consolidated insurance program to streamline the billing and annual renewal process
  • Broadened coverage by moving program to an insurer who specializes in high net worth families and increased liability
  • Conducted replacement cost assessment on properties
  • Eliminated overlapping and gaps in coverage
  • Introduced Personal Group Umbrella policy with broadened coverage and reduced costs for owner and key employees
  • Conducted background checks for domestic staff in conjunction with insurer
  • Counseled owners on loss prevention tips


  • Need for updated documentation
  • Communication challenges
  • Manual processes
  • Benefit design that encourages overutilization
  • Benefits strategy was not in sync with long-term organizational strategy

Kapnick’s Solution

  • Thorough contract review and recommend updates
  • Open Enrollment process and information changes to ensure compliance and reduce administrative burden
  • Flexible benefit design to encourage throughout plan selection and thus utilization
  • Long-term benefits strategy consistent with long-term business strategy
  • Reduction in benefits expense
  • Customized benefit training for HR generalists
  • Below national average medical cost trend


  • Deductible language allowed for large gap in coverage
  • Property rate higher than benchmark
  • Uninsured/underinsured assets
  • Unidentified operating exposure not contemplated by existing insurance
  • No formal safety and claim handling protocols

Kapnick’s Solution

  • Replaced existing insurance carriers
  • Redesigned the windstorm deductible provision
  • Embraced insurance contract terms and conditions
  • Broadened insurance coverage to include previously uninsured/underinsured exposures
  • Reduced overall premium by $550,000
  • Rolled out a behavior based workplace safety program
  • Created a specific claim handling processes and protocols