Could Any of These Cases Happen To You?
Case Study #1– “Big Influence leads to Big Savings”
A sizable petroleum marketer came to Jay for consulting advice. The market was soft and sales were down. Jay reviewed all documents and
provided safety and operations material that gave this company what it needed to demonstrate loss control. Jay’s name was included in the company insurance specifications as an on site consultant hired to facilitate safe growth. The company saved $250,000. Jay didn’t negotiate the deal, but he provided timely consulting advice that impacted the bottom line. How can Jay help you?
Case Study #2– “Big Insurance Savings Save the Bottom Line”
A medium sized cooperative hired Jay to provide the usual package of insurance review, safety material review, bid management and one safety program. The manager said he’d pay the second half of the bill if Jay saved him 10%. On this rare occasion Jay agreed, asking that the manager add up the value of all services in the end and pay Jay what it was worth. Jay brought in a credible bid that saved the company $130,000, an equivalent to 30% savings that went right to the bottom line. Jays review of the policies; safety material, recommendations and on-site safety program alone were worth the fee. Needless to say the manager paid the second half of the bill!
Case Study #3– “Bid Management Created 10% Schedule Credit on Workers Comp”
Due to a few unusual, but large claims a propane marketers experience modification rate had soared to 1.65. This meant they would pay 165% of the normal rates. Jay worked with the agent and insurance carrier, putting things in their most attractive light, to secure a 10% schedule credit of approximately $10,000. The insurance carrier also discounted other coverage’s in order to keep their long time customer. The owner was pleased.
Case Study #4– “Safety Meeting Turns into Sales Meeting”
A long time client questioned the value of Jay’s services in the face of his own economic challenges related to pricing and competition - but he brought Jay in anyway. Prior to the safety meeting, Jay visited with the owner about his problems. Jay put on his marketing hat and helped his client see the good things, set new goals and plan for the future by committing to making more calls on customers and prospects. Jay included those comments in his safety presentation and helped the employees see the value of their service as opposed to just the price of their product. The owner’s optimism was renewed and the employees are making more calls. He was glad he kept Jay on the team.
Case Study #5– “Safety Compliance Consulting Pays Big Money”
A small independent marketer hired Jay to help them get control of their insurance process. Insurance premiums were climbing and the insurance companies with the best rates would not quote due to loss control recommendations. Jay worked with this marketer and the insurance carrier with the best rates, to resolve and implement those loss control recommendations. The big money came at renewal time, when the carrier with the best rates came in with a premium $17,000 less than the renewal offering from their current carrier. The return on investment (ROI) from hiring Jay included $17,000 that went right to the bottom line and a more secure safety future. It doesn't get much better than that.
Case Study #6– “Safety Audit and Recommendations Improve Marketers Image in Insurance Community”
After reading one of Jay's Safety First articles in LP Gas Magazine the CEO of a large independent marketer hired Jay for a long term project. A poor state legal climate, a significant loss history and compliance documentation were issues in need of direction and resolve. Jay worked with their operations vice president and safety director, closing loopholes and creating customer communications designed to prevent accidents and document those efforts. Jay also gave them insight with regard to insurance company protocol and safety image building. The end result was their new safety program package designed to demonstrate loss control for future insurers. Not only did this marketer get the best rates, they significantly lowered their premium from the prior year. The return on investment is still being calculated.
Case Study #7– “Costly Surprises”
A medium-sized contractor had a “costly surprise” in the form of a $100,000 workers compensation premium increase 25 days after the renewal date, caused by late specification figures and underwriting backups. Jay worked with the business owner to coordinate the process for alternative bids and a re-approach to the existing insurance carrier. His efforts resulted in a clearer understanding of alternative markets and ultimately achieved a 10% reduction in the new rates. He works on an ongoing basis with this client establishing insurance management procedures designed to eliminate costly surprises and late presentations.
Case Study #8– “The Absentee Agent”
A chemical distributor hadn’t seen their agent in years. First, Jay reviewed the policy specifications, finding and filling gaps in coverage. He then researched the market and found an industry safety group who understood the business and provided broadened coverage at 30% savings. Lastly, Jay assisted the owner in the selection of an insurance broker who would appreciate their business.
Case Study #9– “The Denied Claim”
A manufacturing company incurred a business interruption/loss of income and extra expense due to a collapsed roof. The business had a three-year policy in force and hadn’t seen their agent in years. Renewals were handled by mail. During the complicated claims process, the insurance carrier paid a partial claim and then denied further coverage. Jay evaluated all policies and determined that specific coverage for this claim had been omitted from the policy, however much broader coverage was represented in the written insurance overview from the agent. After discovering the agent error – Jay recommended changes to correct current policy. A claim was then submitted to the agent’s errors and omissions insurance carrier. That carrier also denied the claim. Due to delays in claim settlement and complications with their landlord – the business was close to bankruptcy. At this time, Jay assisted the business owner in the development of presenting his case to the Minnesota Department of Commerce. The results of this presentation included an investigation of both the insurance carrier and the agent. The client used this process to document miscommunication, achieve restitution and resolve the claim.
Case Study #10– “The Cancellation of Workers Compensation Coverage”
A propane marketer received a cancellation notice on their workers compensation policy due to unprofitable loss experience. Two recent injuries had been reserved for a total of $40,000. The first claim was from a disgruntled worker who fell and broke her wrist in the parking lot. She quickly changed doctors, found an attorney and refused light duty work. This claim was reserved for $15,000 with little hope of settling for less. The second claim was a knee injury reserved for $25,000. In this second case the injured worker was highly motivated, healed quickly, accepted light duty work and was back to normal in a few weeks. A comprehensive claims review determined that this claim was still reserved for the worst possible outcome. Jay successfully worked with the claims and underwriting department to get the reserve reduced and the cancellation rescinded.
Contact Jay to schedule a FREE 1-hour consultation BEFORE your business gets a costly wake up call.
Jay Johnston & Associates, Inc. • (952) 935-5350 • Info@TheSafetyLeader.com
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