The Client and Its Challenge
No one should be surprised when companies that are competitors talk amongst themselves regarding the various vendors with whom they do business. This manufacturer was unhappy with the service it was getting from a local property agency and turned to a competitor to inquire about its vendor relationships. Based on the recommendation received from the competitor, the company contacted Marsh several weeks before its property renewal date to obtain a better price on property insurance premium.

The Risk Consulting Solution
Marsh realized that the best way to improve the client’s property insurance premium was to develop a loss control report that outlined the client’s risks. With one site to survey, Marsh consultants reviewed the client’s current loss control programs, looked at the various storage levels throughout the facility, and analyzed the various fire protection levels. Marsh also reviewed the building construction and occupancy.

After summarizing the data, Marsh developed a loss control market report which included a recommendation on how to increase the fire protection levels within the client's warehouse. The market report was then distributed to several markets.

Results
Zurich reacted favorably to the market report Marsh developed and provided an acceptable property insurance quote. They also indicated that if the client followed the recommendation proposed by Marsh, they would be willing to offer a $40,000 annual premium savings. The cost to the client to implement the recommendation was $40,000 – which was covered by the first year’s premium savings. Marsh reviewed the construction plans as submitted by a fire protection contractor and worked with the contractor to ensure timely installation of the fire protection systems. The client did indeed receive the premium reduction offered by Zurich. This year the client was able to renew its property insurance at a 30 percent reduction because they continue to maintain their HPR status. Marsh continues to work closely with this client by reviewing construction plans as it builds another manufacturing plant and increases the size of its original facility.