Case Study: a large company reduces insurance costs and manages risk with BDO

Large Company reduces insurance costs by 25% with BDO

A large company, which was a recent spin-out from a larger chemical entity, faced a significant challenge after suffering an $80 million uninsured business interruption loss due to a misunderstood insurance deductible. This event created a crisis of confidence in their risk management program, which had been initially designed by another broker. The company engaged BDO to assess their situation.

BDO conducted a comprehensive assessment and then restructured the insurance program. They implemented a solution that included running a brokerage competition, which achieved a $2.5 million reduction in premium and brokerage costs, representing 25% in savings. BDO also entered into a long-term agreement to outsource and manage the company's entire insurance risk function.