The current economic climate is forcing producers and service contractors to take a hard look at insurance costs. Usually, the first (and easiest) step is to engage their broker to market the insurance program with alternate carriers. Competition will either drive down costs or validate the current placement. Market forces can help you migrate to the carrier that provides you the best mix of benefit and value.
Assuming you are placed with the optimal carrier, additional cost saving measures require collaboration between you, your broker and carrier. This means re-examining every aspect of the program and questioning old assumptions. $40 oil assumptions look different than $60 oil assumptions. This isn’t glamourous work - it spans from reassessing property and equipment values to reviewing organizational charts. The low hanging fruit has already been harvested – this process is pruning branch by branch.
A successful collaboration between you, your broker and carrier will likely yield numerous small savings, which taken together, can add up to real money. When performed properly, you can enjoy this savings without reducing coverage quality, and your broker and insurer will gain a greater understanding and appreciation of your business.
You are strategic with your business decisions and should be just as strategic when selecting your insurance and risk management partner. Contact the AssuredPartners Energy team to learn more about our services and products available to companies across the energy spectrum.