Client Results - Property
Leading with Loss Control
Reduces Manufacturer’s Premium and Capital Improvement Budget
A manufacturing client was experiencing significant change in their operations due to economic conditions. One of the contemplated changes was a consolidation of operations that introduced combustible materials into their main warehouse that resulted in existing physical protection being insufficient for the new exposure. As a result, the carrier was asking for significant protection improvements that were in excess of $400,000, or risk non-renewal.Beecher Carlson’s loss control engineer visited the site with the insurance company, outside consultants and client representatives to get a first hand look at the issues. The insurer was asking that either a pump and tank be installed to improve the water supply, or the existing sprinkler system be upgraded to ESFR specifications. Leaning on our years of loss control experience, we recommended that the insurer consider an alternative that used the existing protection, with slight modifications, provided that the client complied with storage height restrictions.
The results: both parties agreed. The incremental cost was $12,500, saving the client $390,000.
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