In the current landscape, navigating the Property insurance market has proven to be arduous for many. A sector that has been particularly impacted is commercial saltwater disposal (SWD) companies, which are facing significant challenges in securing coverage for their oil lease property (OLP).
As insurance brokers, it is our responsibility to adapt and innovate in the face of such difficulties. Recently, our team achieved noteworthy success by devising creative underwriting strategies explicitly tailored for SWD companies. The focal point of this success lies in a unique approach to limit delineation.
Traditionally, SWD OLP rates cast a broad net, uniformly encompassing all equipment affiliated with a given SWD site, irrespective of its specific location on that site. Our breakthrough came through persuasive discussions with underwriters.
We contended that equipment residing directly on the pad should adhere to SWD OLP rates. Conversely, we successfully argued that equipment positioned off the pad inherently faces diminished risks, particularly regarding factors like lightning strikes. Consequently, we advocated a more pragmatic approach, suggesting that such off-pad equipment be afforded the cost-effective advantages of traditional OLP rating.
This strategic delineation has yielded substantial savings to numerous clients, with cumulative benefits reaching hundreds of thousands of dollars. It’s a testament to the power of innovative underwriting strategies in a challenging market.
Our commitment to finding tailored solutions remains unwavering as we continue to navigate this demanding insurance landscape. The success stories from our recent endeavors underscore the importance of adaptability and creativity in not just weathering but thriving in turbulent times.
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