General Contractor: $800K Premium Reduction
AOR completed a multi-year loss-sensitive analysis, normalized historical losses, reviewed payroll and subcontracted-cost allocations, and modeled the contractor's expected versus severe loss scenarios. We then restructured the program around a coordinated carrier placement and a captive strategy for the predictable layer of risk. The new design strengthened subcontractor risk transfer, streamlined certificates and contract review, and preserved critical construction endorsements while reducing fixed market expense.
The contractor had outgrown a traditional guaranteed-cost insurance structure. Despite a disciplined safety culture and improving loss performance, the company was paying approximately $1.4 million annually across a fragmented casualty program. Rising General Liability, Commercial Auto, Workers' Compensation, and Umbrella costs were limiting cash flow, while the existing structure gave the client little financial benefit for retaining and managing predictable losses.
The contractor's annual fixed insurance premium was reduced from approximately $1.4 million to $600,000, an $800,000 reduction, or 57%. The client maintained the limits required by owners and lenders, gained greater control over claims and risk financing, and created a scalable multi-year program that rewards continued safety performance.
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