RBN was hired by a custom beverage distiller for a comprehensive insurance coverage review. The client operates numerous brands under the same ownership. RBN discovered that there were duplicative and missing essential coverages as well as a more complex and costly insurance program than was necessary.
RBN was able to create a master insurance program by consolidating the entire insurance program with two global insurance carriers with one renewal date. Additionally, we secured all the essential missing coverages including umbrella, business interruption, and foreign package policies. It is important to consider that there is no one-size-fits-all solution for structuring an insurance program because different situations call for different approaches. We work with our clients to develop unique programs that best suit their needs and growth plans.
Benefits of a Master Insurance Plan:
- Cost Advantages: Combining all entities results in economies of scales savings that can not be achieved when insuring on a one-off basis.
- Coverage Amount: A master program is structured with a “blanket” limit or a “loss limit” which is adequate to insure the largest possible loss in any one occurrence.
- Term Standardizations: The ability to negotiate all the coverages at the same time results in a more solidly constructed insurance program. It is easier to understand one policy than separate policies for every entity.
- Single Renewal Date: Having numerous programs continually being negotiated leaves significant room for errors and takes up a substantial amount of time.
- Acquisition/Divestiture Ease: A master insurance program is the most flexible mechanism for adding and deleting entities throughout the year. A master program has a pre-set rate for adding and subtracting exposures.
- Budget: Budgeting is simplified since the renewal process takes place once a year instead of property-by-property or entity-by-entity.