Disclaimer: To protect confidentiality, company names and insurance carriers are not disclosed in these case studies. The details provided are generalized to illustrate our expertise and results. Have questions? Call us at: 1-833-374-7475

Background

A vertically integrated cannabis company with $55M in topline revenue, 200+ employees, and an annual insurance spend of $350K faced significant financial exposure due to a high Wind/Hail deductible. Before we stepped in as their broker of record, the company’s deductible was set at 2% of the total loss or $150K, whichever was greater. This meant any claim under $150K would not be covered, as demonstrated by a previous $120K wind/hail claim that fell below the threshold. When a windstorm caused $500K in damage to their cultivation facility, the deductible left them exposed to a $150K out-of-pocket expense before insurance coverage kicked in.

Concerns

The client recognized that their high deductible posed significant financial risk, especially given their prior uncovered claim. They sought a solution to reduce their exposure and ensure better coverage for future wind/hail events.

Our Process

1. Market Leverage: Actively marketed the client’s account to create competitive pressure among carriers.
2. Incumbent Negotiation: Provided the incumbent carrier a “last look,” enabling them to match competitor pricing while significantly reducing the deductible.
3. Policy Adjustment: Successfully negotiated a reduction of the Wind/Hail deductible from $150K to just $10K for the 11/2023 policy renewal.

Results

• Deductible Reduction: Lowered the deductible from $150K to $10K, drastically reducing their financial exposure.
• Claim Savings: When a $500K wind/hail loss occurred in the summer of 2024, the reduced deductible saved the company $140K in out-of-pocket expenses.
• Full Coverage: The claim was fully covered by the carrier, ensuring the company avoided a significant financial burden.

By reducing the Wind/Hail deductible, we provided the client with peace of mind, financial security, and substantial cost savings, demonstrating the value of strategic brokerage and negotiation.

Concerned about high deductibles on your insurance policies? Contact Frontier Risk today for customized solutions.