How Our Process Reduces Insurance Premium

How Our Process Reduces Insurance Premium2024-05-23T18:09:28-07:00

We are NOT your agent’s competitor

But for as little as only $1,500 we can help reduce your insurance costs by as much as 55% annually

Who We Are

We’re a network of unbiased Insurance Consultants who interview, manage, and hold brokers accountable during the insurance policy renewal process so that you Save Money, Save Time, and Gain Peace of Mind.

What We Do

We help businesses reduce insurance costs by as much as 55% annually. We accomplish this by “policing” the brokers, strategically assigning carriers to the agents, fostering competition between brokers, and through our highly-effective Negotiation & Renegotiation techniques.

What We Don’t Do

We do NOT sell insurance. Insurance Consultants are NOT appointed with any insurance carriers and we do NOT receive any commissions or “kick backs” from the insurance carriers.

Due to a strong relationship, nearly 60% of business owners hire us for our consulting services but prefer to keep their current broker.
The other 40% choose a new agent from one of the many pre-qualified agents in our Construction Broker Network.
We will supply you with the best options, but the choice is always 100% yours to make!

A Message From Our CEO

“I did have some reservations given the fact that our company is located in New Jersey and you [were] in California, but nonetheless I was impressed and comfortable enough to move forward. When all was said and done, we managed to negotiate an 12% savings off our new policies. Overall I am very happy and highly recommend your services to anyone in the trades or construction industry.”

Matthew Dorans

In-Line Air Conditioning Co., Inc.

Our 12-Step Process for Premium-Reduction

This Is How We Lower Your Insurance Costs By Up to 55%

We Will Design a Comprehensive Renewal Strategy Plan for You

You’ll receive a step-by step, comprehensive plan of what we’ll be doing on your behalf from start to finish, throughout the quoting process, and during your 12-month policy period after the renewal is complete.

We Will Interview Your Current Broker (and Tell You the Pro's & Con's)

We will interview your existing broker to determine his/her level of expertise and provide you with our recommendations about your broker and their agency personnel. We will explain the “rules of the renewal game” to him/her, along with outlining our expectations for the quoting process.

We Source and Bring In Competing Brokers with Access to the Best Carriers

After fully understanding your company’s operations and exposures, we will interview other qualified brokers from our exclusive Network to determine their “fit for you” and whether or not they have access to the most competitive markets in your geographic area.

We Strategically Assign the Carriers to the Best Brokers

We will strategically assign the markets to your brokers, focusing on granting access to the best markets based upon their agency’s size, premium volume with each carrier assigned, the number of clients they service in your industry, etc.

We Will Ensure The Best Submission to the Marketplace

We will put together a comprehensive submission (full and complete applications) for each broker to use, so that everyone is using the same data.

We Will Keep you up-to-date with all Communication via Email

We will be in constant communication with the brokers to determine their progress and will c/c you via email on all pertinent information so that you’re always aware of what’s going on.

We Set Deadlines & Expectations for All Brokers

We will set requirements with the brokers regarding when quotes are due by and what their proposals need to contain (so we can adequately review them for comparison).

We Will design a Side-by-side Comparison of all quotes received

We will create a summary report for you, highlighting the main pro’s and con’s between each of the quotes received.

We will negotiate & renegotiate with all brokers and underwriters on your behalf

Throughout the process we will continue negotiating and renegotiating with the brokers and underwriters, convincing them to “sharpen their pencils” so that we receive the best terms and conditions with the lowest rates/premiums possible.

We will give you an unbiased recommendation on carriers, brokers, and quotes

We will summarize each broker’s expertise, the services their agency would provide to you, and give you our recommendation about which agent/agency to use and which carrier(s) to bind coverage with.

We will create a 12-Month Service Expectation Timeline for the winning broker

We will create a personalized 12-Month Timeline of Services for your agent to follow to ensure they are providing the best services possible to your company throughout the policy period.

We will monitor and motivate your broker to work diligently all year

We continue to monitor your agent’s efforts throughout the year and — when necessary — remind the agent(s) to provide the services they promised and agreed to, and at a level that you require.

You shouldn’t have to feel like brokers are hiding things from you or that you’re paying more premium than you need to. That’s why we’ve crafted an insurance renewal experience you can feel confident about. Our strategic process of Negotiation & Renegotiation with all your brokers will put you back in the driver’s seat.

You’ll be assured that you bound coverage with the best broker, purchased the best policy available, and paid the least amount of premium possible.

SAMPLE CASE STUDY

Client wanted to keep same broker; Consultant “Behind the Scenes”

Below is a typical example from one of our recent client’s actual results. Although our clients often choose a consulting package where we handle and manage the policy quoting/renewal process on their behalf, due to the important relationship this CEO had with their current broker, they opted for a consulting package that allowed them to communicate directly with their agent while our Insurance Consultant provided the insured with advice “behind the scenes.” In this particular scenario, the agent/broker was unaware the insured had an Insurance Consultant giving them advice.

This client had been with the same insurance agent for over 10 years and wasn’t really interested in changing agents. The consultant coached the CEO about how to select a competing agent(s), how to strategically assign carriers to each of the brokers, provided the CEO with specific email scripts on what information to give/request of each of the brokers, and waited for the quotes to be presented.

Once the renewal quotes were received from the agents, our Insurance Consultant coached the CEO on what to look for in the proposals, what to ask the brokers to do, how “exactly” to negotiate, etc. The result was that the CEO stayed with his current broker (the goal all along), yet saved an additional $16,710 even AFTER the brokers had already presented their renewal quotes. This savings of $16,710 represented an additional 11% savings in total annual premium after we provided the CEO with renegotiation strategies.

Total savings?

$16,710

“Charles, your performance, regarding managing our insurance renewal was amazing! Not only did you keep communications open with us, but we were also continually being informed of your progress with our insurance agent; pushing them to get for us the best rates and holding them accountable. Without a doubt we would not have realized such significant savings had you not been so diligent. Our savings for the annual renewals was in the thousands and we are so grateful. There were some initial misgivings with you being on the west coast and we on the east coast, however, we went ahead anyway and are so happy and pleased that we made that decision! We are so impressed with your services that we would like to retain your services again to represent our interests with another year of renewals.”

Scott Gochnauer, Gochnauer Air Conditioning & Heating

Frequently Asked Questions

Will I have to switch my broker if I use Constructive Risk?2024-05-15T07:07:57-07:00

Not at all. In fact, nearly half of our clients choose to keep their agent for the renewal (while still experiencing considerable cost savings from our negotiation services). Ultimately, if you’re happy with your current broker then our goal is to keep you with them at the lowest possible cost. When our clients do choose to switch brokers, it’s because the total savings is so significant that it doesn’t make sense not to switch.

Why do I need Constructive Risk if I already have a broker?2024-05-15T07:40:07-07:00

When comparing our advice with that of your current insurance broker, you need to consider their perspective and lack of objectivity. Unlike your broker, Constructive Risk does not sell insurance. Unlike your broker, Constructive Risk never receives a commission, gift, or kickback from your insurance carriers. The potential gain or loss of commission income never enters into the decision-making process for us, thereby eliminating any potential conflict of interest.

In addition, your insurance broker is only as good as the companies his/her agency has access to. There are many competitive industry-specific programs available to you, but your broker may not be appointed with that program/carrier. As an independent consultant, Constructive Risk is bound only to our clients and we do only what is best for you.

How does Constructive Risk get paid for its services?2024-05-15T07:10:08-07:00

Constructive Risk is paid a flat-fee directly by you — the client — based on either a pre-set annual or project fee which is agreed upon in advance. The fee reflects the complexity of the project. Our clients have appreciated the fact that our fixed-fee is typically more than offset by the substantial insurance premium savings we secure for them.

What is your fee structure?2024-05-17T07:43:42-07:00

Typically, our pricing structure is a set flat-fee for both our digital products and our consulting packages, but can also be determined on a case-by-case basis and is dependent on what we’re being hired to do.

If we’re being hired to handle an organization’s insurance policy renewal process (bid management), then our compensation is typically a fixed annual fee. Although every project is different, our fee normally hovers around 1.5% of our client’s total annual insurance policy premium, with a minimum guaranteed annual compensation of $1,500.

As an FYI, we have never had a client not receive more premium/costs savings than our flat-fee. Our clients typically save many thousands of dollars in the form of reduced insurance premiums/costs when compared to our flat-fee, while also saving time and gaining peace of mind with the final outcome.

How much money could we expect to save on our insurance after hiring Constructive Risk?2024-05-17T07:45:36-07:00

Every project and every client is unique. However, when hired to manage an insurance policy renewal process (bid management), our clients typically average annual insurance savings of anywhere between 11% – 17%, compared to if they were to only use brokers solely. Moreover, many of our clients have also experienced additional savings from “sunk” and/or “hidden” insurance costs (i.e. retail & wholesale broker fees, state taxes and filing fees, final audits, deductibles on claims, etc.).

So, although 11% – 17% tends to be our average, the most we’ve ever saved a client — after quotes were already received and then we Renegotiated the quotes on the client’s behalf — was 55% off the total cost of their annual insurance spend.

Do you work with Non-Construction businesses as well?2024-05-15T07:12:21-07:00

Yes, we do. Although the construction industry is our primary focus here at Constructive Risk, we’ve worked with plenty of businesses in other industries as well. We provide our services to many industries, such as: Healthcare, Financial Institutions, Hospitality, Education, Nursing Homes, Fitness Clubs, etc.