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Alternative Risk Solutions

For many years, large corporations have used alternative risk transfer strategies to reduce insurance costs, improve risk management, and save taxes. These benefits are now available to middle market companies, as well as groups and associations.


 
For sophisticated companies, managing and financing risk become important aspects of overall business strategy.

If your business (or group/association) pays over $1 million annually in insurance premiums, you should look at Alternative Risk Transfer, otherwise known as “ART.” 


ART can provide significant benefits to middle market companies, including:

  • Minimize insurance cost
  • Improve cash flow
  • Specialized loss prevention
  • Specialized claims services
  • Better risk control

ART programs can encompass:

  • Workers’ Compensation
  • General Liability
  • Property and Casualty
  • Auto
  • Wrap Programs
  • E&O / D&O
  • Other forms of insurance

ART programs can be designed for:

  • Individual businesses that pay over $1 million annually in insurance premiums
  • Affiliated businesses (groups, associations, franchisees) that collectively pay over $2 million annually in insurance premiums



Case Example:   Great Western Contracting (“GWC”) pays $2 million annually in general liability insurance premiums, including construction defect coverage.  GWC has a good loss history, and has filed few claims.  With traditional insurance, the $2 million in premiums is paid and gone.  Now, GWC enters into an Alternative Risk Transfer program.  Under this program, GWC stills pays $2 million in annual premiums, but if claims are low, up to $1.3 million of the premium can be returned to GWC, meaning the net insurance cost went from $2 million to $700,000.   If claims are high for a particular year, GWC still has full insurance coverage with a large insurance carrier.  GWC has a “win win”: during the good years, it gets a huge refund; during the bad years, it has full coverage through an insurance carrier.


If your business pays over $1 million annually in insurance, please contact us  to discuss how ART can provide benefits to your business.

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