CLASS LTD is a nonprofit helping individuals with intellectual or developmental disabilities. With locations throughout Kansas, a large number of people throughout the state rely heavily on the services they provide, especially following the COVID-19 pandemic.
As a community-based nonprofit, they follow a strict budget to ensure they have the resources and financial capability to continue their mission of helping the people they serve reach their maximum potential.
CLASS LTD was notified their auto insurance premium was doubling at renewal. The main issue wasn’t caused by claims but rather that the organization provides “free” transportation at one of their locations to support the community.
Once their insurance carrier at the time discovered this, the carrier said they would not renew CLASS LTD’s auto coverage. Their broker was forced to put them with a substandard insurance carrier, causing their premium to double. Unfortunately, their broker did not have any other options for them.
CLASS LTD was also unaware of an upcoming increase with their experience mod, which would ultimately increase their workers compensation premiums. CLASS LTD was unprepared for such increases in auto and workers comp and was blindsided by higher insurance rates.
Advisors of The Miller Group peeled back the layers of the nonprofit’s situation and discovered multiple opportunities.
First, The Miller Groups’ nonprofit expertise helped to determine that the “free” transportation CLASS LTD provided was at one of their remote locations and had very strict guidelines when providing rides.
Advisors at The Miller Group relied on their relationships with some of the top nonprofit insurance carriers in the industry and carefully explained the situation. Carriers agreed CLASS LTD’s exposure was low, so several standard insurance markets were now interested.
In the end, quotes were received that saved the nonprofit over $90,000 compared to what they would have spent with a substandard insurance carrier.
Second, the idea of using telematics to monitor employee driving habits was introduced, potentially rewarding the company for safe driving rather than only being penalized for accidents.
Third, a full program consisting of safety consultations, partnership meetings and claims monitoring was put in place to help manage their insurance program throughout the year and reduce their mod rate.
In the end, the nonprofit avoided spending an extra $114,000 in premiums on their overall insurance costs in just the first year.
They also have a safer fleet of vehicles and drivers thanks to the introduction of telematics and are working to reduce their workers compensation claims. Mod rate monitoring and The Miller Group’s data analytics have also allowed the client to be better prepared for their insurance renewals.
CLASS LTD found that working with a broker experienced in the nonprofit sector can truly make a difference. Every aspect of the broker partnership – from a knowledge standpoint, to the cost-savings, to the broker consultation and proactivity – has helped guide them throughout the year.
Thanks to this successful partnership, the nonprofit has been able to:
“It is clear The Miller Group has knowledge of the challenges we in the non-profit world face. They also have a strong commitment to risk management and how to best position our agency for not just the current renewal but those to come. They have been very responsive to any inquiry we have made and have produced results for our renewal that have exceeded our expectations. “
Scott Thompson,
President, CEO
CLASS LTD
