case study 3

Retail chain improves cover and saves money!

Our clients are a chain of retail clothing shops, with 10-15 employees at 5 sites. Their insurances, had been arranged, by another broker, over the years as need arose, i.e. when another shop was opened, comprising of a separate shop policy for each location.
We identified that this arrangement was not only over complicated, involving several renewal dates, different insurers, cover and limits on the sum insured at each location, but also would sometimes be completely inadequate, as newly purchased stock from wholesalers was kept at one of the shops prior to being distributed, sometimes for several days, so the sum insured was often totally inadequate.
We arranged a single policy, with a sum insured, sufficient to cover stock at the highest level, i.e. just after a visit to the wholesalers, with the sum insured floating between all 5 locations, (this means that each location is covered for up to the whole of the total sum insured).
Their insurance premiums were reduced by over 20%, a simple single renewal date introduced, in line with their financial year end and a larger, therefore more attractive, risk to present to insurers was created.
Incidentally, paying a single larger premium, rather than several small ones, secured a further saving of 3% on the monthly credit facility.

The situation where insurance arrangements have not kept pace with changes to the business, is one of the most common situations to arise, we see it all the time and seek to maintain an accurate picture of every clients’ business by regular genuine contact and communication, not just sending out the renewals each year.