Commercial Insurance
We protect your most valuable assets and wealth through personal insurance products and risk management services.
The
Problem:
The Cost of Risk can be one of the largest expenses for any business or organization. Unfortunately, most brokers do not proactively work with their clients to build a risk profile that not only delivers great results for the company, but also enables our team to negotiate the best insurance terms and conditions.
The
Solution:
The Cavignac Risk Management Process, called the TotalRISK Approach™, is designed to lower your Cost of Risk and drive dollars to your bottom line.
TotalRISK Approach® summarizes our philosophy on Risk Management. One way we holistically manage risk is by following a defined, results-driven Risk Management process. This process is four steps and is designed to continually improve the company's Risk Management Practices.
These services include:
We review and identify your exposures to loss along with your existing insurance program structure.
Through a series of consultations and inspections, we will help identify and agree on the best techniques that will reduce the frequency and severity of risks.
See: Risk Control
The areas we focus on are:
- Human Resources
- Safety
- Claims Management
- Contractual Risk Transfer
- Financial Risk Management
We evaluate Risk Finance/Insurance options. This enables us to place coverage with the right insurance company at the lowest realistic cost.
We continue to refine our strategies and stay on top of changes in your company so that we can proactively manage your Total Cost of Risk.
Insurance Products
An insurance program only brings value when it’s been designed to fit your organization. Below are a list of the types of coverages we negotiate and procure for our clients:
Automobile Liability
Business Owner Policies
Crime
Cyber/Privacy Liability
Directors & Officers Liability
Employment Practices Liability
Earthquake Insurance
Environmental Liability/Pollution
Excess & Umbrella
Flood Coverage
Fiduciary Liability
General Liability
International
Key Person Life Insurance
Kidnap & Ransom
Parametric Insurance
Product Recall
Professional Liability/Errors & Omissions
Property
Reps & Warranties
Trade Credit/Accounts Receivable
Workers’ Compensation
Other Customized Insurance Solutions
Alternative Risk Financing
We offer a range of alternative risk financing solutions including captives, large deductible plans and retro plans. Guaranteed Cost insurance products are the most common type of products for small to mid-size businesses. These policies are defined by smaller “maintenance” deductibles, dedicated limits, and defined premiums. As businesses scale, additional insurance products become available. We call these Alternative Risk Financing options. Some include, retrospective rating programs, high deductible programs and captive programs. These types of products can be known as “Performance-Based” Insurance products.
Captives
There are a variety of captive products on the market. Single parent captives, group captives, micro captives, among others. For your traditional lines (Worker’s Compensation, General Liability and Auto), most mid-large size companies should consider one of these arrangements. Group Captives are the most popular for mid-market companies and they offer those companies the ability to capture underwriting profits. Simply put, entering a group captive is akin to owning an insurance company. There are certain sunk costs that go towards administration (roughly 40% of premium), the remaining amount is used to pay claims. There are several factors to consider when evaluating group captives. This model is proven and is very popular with middle market companies.
There are a variety of Performance-Based products. Some of those products are listed below:
Primarily written on worker’s compensation policies, retro plans rate and charge premium based on actual losses incurred during the policy period. In contrast, guaranteed cost plans make rating adjustments on future policies based on previous year’s results. Retro plans generally start with a standard premium (based on estimated losses), this premium is adjusted by actual results from the policy period. If experience is worse than expected, the insured will be charged an additional premium. If better than expected, they will receive a return premium. Retro plans can be complicated, but offer significant premium savings based on loss performance.
Whereas retro plans and guaranteed cost plans start off with premiums generated by expected losses, loss adjustment expenses and other loss costs, large deductible plans are a great option for companies looking to manage cashflow and maximize premium savings. The insured is responsible for all claims up to the defined deductible amount (oftentimes between $100,000 – $500,000 per claim). The insured has the control and flexibility to manage and negotiate claims up to their deductible amount. Once the deductible amount has been reached, the insurance company takes responsibility and starts to pay for losses. Large deductible plans are a great option for companies looking to manage cashflow and maximize premium savings through sound risk management practices.
There are a variety of captive products on the market. Single parent captives, group captives, micro captives, among others. For your traditional lines (Worker’s Compensation, General Liability and Auto), most mid-large size companies should consider one of these arrangements. Group Captives are the most popular for mid-market companies and they offer those companies the ability to capture underwriting profits. Simply put, entering a group captive is akin to owning an insurance company. There are certain sunk costs that go towards administration (roughly 40% of premium), the remaining amount is used to pay claims. There are several factors to consider when evaluating group captives. This model is proven and is very popular with middle market companies.