A rapidly growing labour supply business providing rail workers to Network Rail Principle Contractor Licence holders. We quickly identified two issues of concern. The current insurers were charging the employers and public liability of £180,000 a year which was hugely overpriced – approximately double what they should have been paying.
As a result of the rapid growth of the labour supply company, large additional premiums were being paid – of which the previous broker had being taking 20% commission, amounting to over £100,000 in commissions during the last three years. Our examination showed which PLC contracts would provide protection in the event of a workplace claim. Improvements to all contracts were suggested by us and we presented our risk analysis of those PLC contracts to the insurers, who agreed to reduce the premiums to reflect that worker accidents would not pass to our client, the supply agent.
We also included professional indemnity cover for £1m, which is essential cover for labour supply companies (which had been missed by the previous broker). The broker remuneration was reduced from £40,000 commission a year to a single transparent fee of £20,000 a year. This figure does not vary according to increases in turnover and we agreed not to charge any fee for future adjustments to premiums. We also reduced their premium by £70,000 a year, the total saving on premiums/fees/commission was £90,000 a year.