CPG company has only 60 employees, but paid $75,000 per year for
insurance.
A manager said"we'd accumulated a lot of (insurance) policies over
the years,
and at time we just paid our bills and didn't look at what we were
paying for"
CPG's over spending on insurance could have been avoided if the firm
had simply asked its broker a few basic questions and notify him of
certain changes.
For a while year,CPG had been paying for converage on four rental cars
when it had only three."When we asked, why didn't you take that fourth
car off the policy?" The answer was "you didn't tell us to".
Managers try to deal with problem.They found workers' compensation plan
got big problems.Several employees were in higher risk categories than
they should be because the company base job classification on salary
and position rather than activities.
CPG also asked the broker to translate all policies into "real English",
something they can understand. They found an insurance was bought because
of misunderstanding the technical terms.It was unnecessary.
CPG found the biggest cost savings simply by asking for lower premiums on
rarely used policies.
As a result the company saved $10,000 per year on insurance.The most
important thing is "we have learned to be proactive and ask queations,"
says the managers"as opposed to just blindly accepting what they give
us