Your company, your people, and the way you compete in the marketplace are unique. Your risk management program should be, too. At Gallagher Transportation Services, we recognize this and make it the foundation of every client relationship. Our team of transportation risk management specialists has in-depth industry knowledge and extensive experience designing and implementing customized programs to fit our clients’ needs.
Selecting the Right Broker Leads to Great Results [ Case Study]
A global logistics company with 30 international locations and a diverse business interviewed multiple insurance brokers. Their decision to interview brokers was driven by their current broker’s lack of international presence and expertise, but they thought they were getting good results on their domestic program. The company narrowed down their choice to two options: Gallagher and one of our largest competitors. They chose Gallagher because we actually addressed specific problems we would fix in their insurance program, rather than only talking about our capabilities. They recognized that “biggest isn’t always the best” in their own business and believed this concept would apply to insurance brokers too.
Gallagher Saves Rail Contractor on Premium While Improving Program Structure with Core360 [ Case Study]
A rail customer was offered only one option on their workers compensation renewal that was more than double the expiring policy. The contractor was working in more than 10 states, and their current agent was limited on the markets they could use.
Transportation Client Gets $2.2 M in Collateral Returned [ Case Study]
Gallagher recently moved a long-term client from one insurance carrier to another after 20 years with their previous carrier. The client was concerned about how much of the collateral would be returned by the carrier.
Is Your Broker Hungry? Trucking Company Struggles with High Deductible Workers Compensation Renewal [ Case Study]
Workers compensation issues are a challenge for nearly every business, but given the activities for trucking employees, the risk could be even higher. A large privately held trucking company was facing a difficult high deductible workers compensation renewal with their insurance broker of 15 years. Forty days before the renewal, the broker delivered a 15% rate increase to their workers compensation premium with no alternative options or additional discussion anticipated with the company to bind their coverage. Were there better options?
Right Team for the Task: Broadening Transportation Strategy with Independent Contractors [ Case Study]
When a large privately held transportation company was forming an “asset light” division to utilize independent contractors - instead of company drivers, they needed a comprehensive insurance coverage program to minimize their risk exposure. However, during the due diligence process of developing this new strategy, the company shared some of their challenges with additional coverage and service issues they were having with their broker of 25 years. Was there an alternative that could effectively support their new operations while addressing their client service concerns?
Expect More From Your Broker: Shifting Collateral Requirements in Your Favor [ Case Study]
We all know that collateral plays a major part in negotiating an insurance program. The key is to not only focus on the collateral when you are putting the program together but to focus on the collateral requirements down the road. Consider our client’s “lessons learned” when exploring your own coverages.
Transportation Company Saved over 25 Percent on Workers Comp [ Case Study]
Arthur J. Gallagher & Co. was given an opportunity to evaluate the claims process and review the historical losses of a transportation company with over 500 U.S. locations that needed a more cost-effective insurance program. With many updates and new initiatives, the organization recognized a significant improvement.
Success Story: Great Claims Advocacy
Our insured is in the business of manufacturing and supplying large power electrical transformers for industrial complexes. They sold a transformer to an out-of-state customer and had it shipped by a third party trucking company. During the transport the truck had a single vehicle accident and the transformer rolled off of the truck and was totaled. Although the buyer was required by contract to insure the transformer throughout the trip, they failed to do so. To make matters worse the third-party trucking company only carried limits that would cover less than one third the value of the cargo. Our Insured filed a first-party claim under their "Automatic Contingent Coverage." After review of the matter our insured’s carrier denied the claim citing that Automatic Contingent Coverage only applied to transoceanic shipments and not domestic shipping. Our insured disagreed, but the carrier sought a legal opinion that supported their denial.
One of our Senior Property Claims Advocates was then asked to get involved. He worked with a fellow Claims Advocate and together they developed arguments to present to the carrier. Aside from pointing out underwriting inconsistencies as well as gray areas within the policy, they reasoned that our insured had been paying for Automatic Contingent Coverage throughout the policy period and they do no transoceanic shipping, thus they have been paying for a coverage that they would never benefit from. After much debate the carrier reversed its position and is now honoring the $344,520 claim to replace the totaled transformer.
Success Story: Is Your Broker Working for You?
A multi-location Truck Dealer who had a long term relationship with their regional broker had been purchasing a Property Insurance policy that contained “off-the-shelf” sublimits. For many years, this client had been leaving available but un-negotiated policy limits “on-the-table”. For no additional premium, our Gallagher team was able to add $23,525,600 to their insurance limits.
Success Story: Employment Practice Liability
Coverage was denied by a leading carrier in an EPL case due to interpretation that a workers compensation hearing was a “prior administrative proceeding” and thus the claim was initially denied. Gallagher disagreed. We located the author of the policy (a senior officer at the carrier) who supported our position on the intent of the policy – and called the claims adjuster. The carrier paid the claim.
- Achieved a $1,833,611 reduction in total incurred (@ 24 months) within the first year of taking over the program
- GB achieved over $1.3 million in net managed care savings, resulting in an ROI of $26
- The client’s overall lag time was reduced by over 14% after moving to GB
- GB decreased the open takeover claim inventory by 43% within 12 months
- GB was able to increase the closure rate by 16% @ 24 months
- We continue to provide access to and ongoing training of our industry leading RMIS tool, Luminos
Success Story: Claims Management/Third Party Administrator
A GB Transportation/Distribution client with just over 2,000 domestic employees asked Gallagher Bassett to take over its Workers’ Compensation program to improve program outcomes and efficiencies. This GB client had been with another claims administrator and selected GB to experience improved technology, collaboration and overall outcomes.
Success Story: Cargo & Contingent Cargo
Gallagher led the introduction of Travelers’ industry-leading Cargo & Logistics Pak to the marketplace and negotiated additional coverages to meet one of our large freight broker’s specific needs. Gallagher most recently helped build a program through Allianz with extremely limited distribution, now the industry benchmark for insurance coverage with solutions for logistics companies with both domestic and worldwide risk.
Success Story: Claims Management/Third Party Administrator
A longtime transportation client with more than 8,000 vehicles asked Gallagher Bassett to take over its liability program to improve its outcomes. The company had been managing approximately 10,000 GL claims annually in-house. Through Gallagher Bassett’s efforts, we helped the client:
- Reduce average incurred by 8%
- Reduce open claim volume by 19% within three years
- Cut legal expenses by 24% three years after taking over the program
- Reduce the total annual cost of liability program by $1.2 million
Success Story: Contingent Liability
A $350 Million trucking company and logistics provider did not understand the extent of their third-party risk because their freight brokerage division was included within their motor carrier insurance program. After evaluating their insurance program and operations, our team:
- Moved three lines of casualty coverage to a captive, creating $1 Million in fixed-cost savings in the first year
- Removed the logistics business from the named insured listing on the motor carrier insurance program
- Secured separate Contingent Auto Liability to affirm third-party liability coverage
- Secured punitive damage coverage to wrap around the excess liability program
Success Story: Transportation & Logistics
Gallagher recently improved coverage and reduced costs for a $3.5 billion privately held transportation company seeking to build an insurance program for the independent contractors of their newly formed “asset-light” division. After awarding Gallagher part of its business through an RFP process, our review uncovered structural concerns in the program. Our new client ended a 25-year relationship with their prior broker and awarded Gallagher the entire casualty program. Gallagher delivered a 15% reduction in premium and collateral client while adding $10 million in coverage. Our team:
- Recommended an entity structure to limit third-party liability risk due to freight brokerage
- Secured truck broker liability coverage with a $2 million limit
- Negotiated with the excess carrier to attach to the truck broker liability policy for no additional premium
- Secured $8 million of punitive damage coverage in the excess layer
- Negotiated $3 million reduction in current and legacy collateral
Success Story: Program Structure/Markets
A logistics client had worked with a broker who claimed to specialize in freight brokers but left the company with coverage deficiencies. After an extensive review of their risk management program, Gallagher negotiated a:
- 5% decrease in workers compensation rate
- 27% decrease in cargo rate with 16 coverage improvements
- 54% decrease in property rate with 27 coverage improvements
- 17% decrease in general liability rate
After digging deeper into their operations, Gallagher recommended:
- Revisions in motor carrier vetting programs
- Certificate checking and claim recovery procedures.
Our client realized broader coverage, decreased pricing and better controls, which helped them better manage their total cost of risk
Success Story: Benefits
A $350 million trucking company and logistics provider moved its insurance program to Gallagher, realizing several million dollars’ worth of savings and improving coverage through creative solutions. We introduced our benefits team, suggesting they might produce similar results.
- After moving to Gallagher’s benefits team, our new client saved.