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

Two related operating entities in the cannabis manufacturing and packaging industry faced challenges with their insurance structure. With separate policies for each entity, they sought to consolidate and reduce their annual insurance spend, which amounted to approximately $300,000. Together, the entities generated $90M in revenue and employed around 75 people.

Concerns

• A complex insurance structure with over 10 policies to manage.
• Inaccurate premium assessments due to pass-through revenue between the entities, leading to inflated costs.

Our Process

1. Policy Review: Conducted a thorough review of the existing insurance policies to identify consolidation opportunities and evaluate premium calculations.
2. Revenue Analysis: Performed a detailed analysis of pass-through revenue between the two entities to identify errors and correct premium assessments.
3. Policy Consolidation: Streamlined coverage under the parent organization to simplify management and reduce redundancies.

Results

• Policy Consolidation: Reduced the total number of policies from over 10 to just 5, creating a simpler and more efficient insurance structure.
• Cost Reduction: Identified and eliminated double charges for pass-through revenue, resulting in substantial premium reductions.
• Six-Figure Savings: Achieved six-figure savings in overall insurance costs, allowing the company to allocate resources more effectively.

By consolidating policies and correcting premium assessments, this manufacturing and packaging company successfully simplified its insurance structure and achieved significant cost savings, strengthening its financial position for future growth.

Need to reduce your company’s insurance costs? Contact Frontier Risk today for customized solutions.