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The Balance between Customization and Consolidation

Are you a private equity firm or an investor with a diverse portfolio of investments? Do you struggle with managing multiple insurance programs for each of your investments? If so, you may be considering consolidating your insurance programs into one master program.


But is this the best solution for you and your business?

In this blog post, we’ll explore the pros and cons of keeping separate insurance programs versus a master program that covers all of your investments.




  • Management control: in order to attract and retain the best managers at the portfolio company level it may be that a private equity firm must delegate control of the insurance purchasing decision down to the portfolio level similar to decisions about banking, marketing and H.R.


  • Tailored coverage: When you have separate insurance programs, you can tailor coverage to fit the specific needs of each investment. This allows you to choose policies that offer optimal coverage at competitive prices.


  • Better risk management: With separate insurance programs, it’s easier to manage risks and claims since each investment has its own policy. In the event of a claim, you won’t have to worry about other investments being affected.


  • Flexibility: Separate insurance programs offer greater flexibility in terms of choosing carriers, coverage limits, and deductibles. You can select the best options for each individual investment.





1) Cost take-out opportunities: aggregating premiums into a master insurance program with a particular insurer can be significantly less expensive than buying to coverages separately.


2) Streamlined administration: A master insurance program can simplify administration by consolidating policies, renewals, and claims. This can save time and reduce administrative costs.



3) Pre-negotiated specifications: With a master insurance program, you can ensure consistent coverage across all investments, reducing the risk of gaps in coverage.  This is typically achieved by pre-negotiating terms and conditions that must be offered across the portfolio.  Likewise limit and retention/deductible levels may be set to mirror the private equity firm’s appetite for risk and investment return on capital.



Whether to keep separate insurance programs or consolidate into a master program is a decision that requires careful consideration. Ultimately, the best approach depends on your unique needs, risk tolerance, and investment goals.


At Kapnick, we can help you make an informed decision by providing expert advice, customized solutions, and exceptional service. Contact us today to learn more about our insurance management services and how we can help you achieve your business goals.