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:
PRIVATE RISK MAGAGEMENT
- 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
EMPLOYEE BENEFITS
- 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
PROPERTY & CASUALTY
- 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
