A transportation company wanted to manage out of control workers’ compensation costs. Within 3 years, Lockton developed a unique and proven plan. It created a safety culture that the company's leadership and workers bought into, and lowered claims from $750,000 a year to less than $100,000 a year.

One Lockton trucking client faced annual workers’ compensations costs reaching $30 million. Its senior management charged Lockton with finding out why and how to control the costs. Lockton was challenged with the reality that drivers and fleet managers mainly communicated via computer, since drivers spent 17-20 days on the road. Lockton implemented the hiring and training of an Injury Management Counselor, training for fleet managers and drivers, as well as a transitional-duty task force to create accommodations for drivers to heal on the job. With nine months, the company showed a 29 percent decrease in average cost per claim.

A transportation company earning nearly $900 million annually had a heavily leveraged balance sheet and recognized its inefficient insurance program as an area for improvement. After being asked to intervene, Lockton found areas of collateral redundancy and various premium components that required revision. Lockton met with the company’s insurer to review the analysis and reach a consensus on the collateral reductions, in addition to negotiating a lower premium that retained many of the existing terms and conditions intact. In exactly 30 days Lockton delivered a net reduction in collateral of $20.2 million and a premium savings of $6.3 million.

The economy was punishing one of Lockton’s prospective clients, a big ticket consumer products delivery company. The costs of the firm’s benefits plan became an increasing concern for its leadership and its private equity owners. So the distributor needed an innovative solution.

Lockton conducted a review of the benefits program and the company’s business model. Lockton recommended a two-tiered benefit strategy, offering the company’s lower-earning employees a limited medical plan.

Lockton created a separate benefits classification for lower-earning employees, so they had basic coverage for day-to-day medical expenses, such as wellness visits. This allowed the client to move from a non-existent employee benefits program to half of the workforce with a limited medical plan.

Lockton’s plan reduced the premium increase from initial indications of a 12% increase to a 3% increase. This lower cost option also increased employee participation by 30%. These results and service exceeded client expectations.

The trucking industry faces a complicated risk profile, especially in a slow economy. Companies struggle to efficiently utilize borrowing capacity and worker’s compensation claims tend to increase as drivers drive fewer miles. Lockton recommended that a trucking client review its insurance program, and found that the incumbent carrier held $5 million more in collateral than necessary. After a switch to a new carrier, Lockton negotiated a collateral return of more than $2 million from the previous carrier and reduced the premium by 11.4%.

A leader in the industrial waste management field faced substantial issues with collateral, pricing, and terms on its insurance program. The carrier was incorrectly assessing actuarial and credit exposure. By improving the carrier's credit rating and estimated loss exposure, Lockton successfully eliminated the collateral surcharges, reduced the collateral obligation by $4 million and delivered a best-in-class insurance program.