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 brand-only cannabis company, with no cannabis plant-touching assets or licenses, faced significant challenges with their insurance program. Despite having only $10M in revenue and a modest team of 30+ employees, they were spending over $175K annually on premiums, including more than $100K solely on Directors & Officers (D&O) insurance. This excessive spending stemmed from misclassification issues that inaccurately described their operations as those of a manufacturer rather than a brand.

Concerns

• Misrepresentation in the market due to inaccurate classification, leading to inflated premiums.
• The need to optimize insurance costs while maintaining appropriate coverage limits and quality.

Our Process

1. Program Takeover: Became the broker of record for the company’s insurance program.
2. Operational Reclassification: Corrected the description of operations, ensuring the company was represented accurately as a brand and not a manufacturer.
3. Market Competition: Extensively marketed the account to multiple carriers, creating competitive leverage to secure better pricing and terms.

Results

• Cost Reduction: Cut the company’s total insurance spend by 50%, while maintaining coverage limits and the quality of protection.
• Financial Impact: The substantial savings achieved allowed the company to reinvest in its operations, including granting their CFO a significant raise as a direct result of the cost optimization.

By accurately representing the company in the market and leveraging competition, we not only slashed their insurance expenses but also contributed to their financial stability and employee recognition, turning insurance savings into a win for both the organization and its leadership.

Struggling with misclassified operations and inflated premiums? Contact Frontier Risk today for customized solutions.