Case Study – How Shopping Insurance Cut Costs by 50%

Customer Profile/Backstory: A Western Pennsylvania commercial lending institution has about $217 million in assets and specializes in small business loans. They have a niche portfolio in working with the Small Business Administration (SBA) of Pennsylvania and are one of the highest lenders of SBA-guaranteed loans.

Challenge/Problem: This institution wasn’t experiencing any particular challenge at the time they were approached by Lenders Risk. However, they were receptive to our call and agreed to allow us to shop the market to ensure they had the best possible insurance rates.

Solution/How We Helped: Because of our relationship with multiple carriers, Lenders Risk was able to shop the market and secure the same coverage for this lending institution at a cheaper cost. By switching insurance carriers, we were able to provide substantial cost savings in the neighborhood of $80,000 as well as to provide them access to our simple-to-use online service portals and outstanding customer service.

Outcome/Feedback: “I was shocked by how much we were able to save, and by using a company like Great American, whom everybody’s heard of. I did a cost comparison and the cost savings were quite significant. The REO or foreclosure portion was cut in half and the force-placed was reduced by more than half. (The flood rates didn’t fluctuate that much.) A greater than 50% savings in our premium made it an easy decision for us.”

“We just celebrated our one-year anniversary of working with Lenders Risk. They are always extremely responsive and we just processed our first claim with them, which went smoothly.”

“We have an administrative assistant who utilizes their easy-to-use hazard insurance platform. It’s instantaneous whenever you need to place a property on there. The reports are nice and easy and the billing is nice and easy. The lenders here all get a clear copy of what they have on force placed and what they have on REO. It’s easier for everybody.”

“The service has been outstanding and the simplicity of the administrative work of this has been great. You don’t want to have somebody spending so much time on what is already some type of problem. If you’re in a force placing-scenario, it’s already some type of issue. The last thing you want to do is spend more man power to keep it insured. The pricing is very competitive and working with Lenders Risk has been so easy. There’s really no reason to look anywhere else.”

– J.P., Assistant VP/Director of Insurance Services