Logistics / Trucks

Reduced Risk Insurance Costs by 40% for a Transportation and Logistics Company

A warehousing, logistics, and transportation company had acquired multiple competitors in the past decade, subsequently becoming one of the largest third-party logistics companies in the United States, with gross revenues of more than $1 billion.Prior to UIC, Inc.’s involvement, the company’s risk management program consisted of property, liability, workers’ compensation, E&O, and ancillary lines, which were purchased on a commodity basis to fulfill customer obligations.

OUR SOLUTION

UIC, Inc. performed an independent risk management review and was provided complete access to senior management and all appropriate information. Within several days, the UIC, Inc. team was able to provide a comprehensive report on how to structure the risk and insurance programs. The structure was designed based on analyses of coverage and benchmarking against companies of comparable size and operation. UIC, Inc. proposed a strategy, which, if properly executed, would provide superior coverage at lower costs.

With UIC, Inc.’s involvement, the following results were realized upon renewal:

1. The company’s redundant and gapped insurance program was solved through the design and negotiation of master contracts, providing seamless coverage over their diverse exposures. Coverage gaps were closed and continuity was obtained.
2. Annual premium savings of over 40% were achieved, while simultaneously improving coverages across the board.
3. Recognition of the company’s need for more direct influence on its claims handling. UIC, Inc. worked hand-in-hand with company management to focus on managing claimseffectively. Within one year, 80% of open claims were closed at a rate much less than anticipated and reserved by the insurer.
4. Policies were instituted to reduce reoccurring claims, providing a safer workplace for employees and a more effective and attractive risk management program.