CASE STUDY
Partnership for the Win
CASE STUDY
Partnership for the Win
THE CHALLENGE
Broker A had a client with a large upcoming project. It was a $1.5 billion project on an aggressive time schedule and the client wanted to implement an Owner Controlled Insurance Program (OCIP). The OCIP would not only meet the aggressive schedule, but it would give the client greater control over safety on the project site and lower the overall project insurance cost.
The client released a Request for Proposal (RFP) for OCIP Brokerage and Administration services as their current broker, Broker A, did not have the expertise to manage an OCIP.
Broker A, a large regional broker, now faced a real concern of not being able to service the needs of their largest client.
CHOOSING TSIB
For Broker A to keep their client, they had to partner with another firm. They needed a broker that not only had OCIP Administration capabilities for a project of this size, but also had experience with all the different phases of construction; including the pre-construction phase to project closeout as well as the completed operations period during the Wrap-Up program. Broker A decided to reach out to Turner Surety and Insurance Brokerage, Inc. (TSIB). Broker A knew that TSIB’s extensive experience in designing, placing, and administrating Wrap-Up programs of this scale would be critical when responding to their client's RFP.
TSIB operates a Wrap Administration Service Center that manages the largest rolling construction CCIP in the industry. This Wrap Service Center manages hundreds of projects with a construction volume of $4.5 billion annually and uses a state-of-the-art customizable paperless Risk Management Information System (RMIS) to keep everything organized.
It only made sense to team up with TSIB.
CO-BROKER PARTNERSHIP
Broker A and TSIB responded to the RFP as a Co-Broker partnership. This solution was the best way for Broker A to not only retain its client, but also be considered for future opportunities with this client.
With this partnership, Broker A was now able to utilize TSIB’s robust resume of completed projects. At the time, TSIB had managed 1,000+ completed construction Wrap-Up programs, exceeding $70 billion in construction volume. This provided Broker A access to TSIB’s resume which solidified the message to the client that the Co-Broker partnership had the technical ability, as well as documented real-world OCIP experience.
TSIB managed the OCIP Risk Management scope and OCIP Administration. In the RFP response, TSIB highlighted how their approach includes a dedicated Program Manager to oversee each project. The Program Manager would assist the client and General Contractor (GC) with questions and manage the success of the overall project administration. This was especially important on this project as the RFP requested someone to coordinate with the GC on the dates that all trades were scheduled to arrive on-site, which would help keep the aggressive project schedule.
Broker A also had a lot of in-house experience. As such, they took the lead on the following aspects for the RFP response:
- OCIP program design and marketing
- Builder’s Risk placement
- Claims/Loss Control
CO-BROKER PARTNERSHIP
Broker A and TSIB responded to the RFP as a Co-Broker partnership. This solution was the best way for Broker A to not only retain its client, but also be considered for future opportunities with this client.
With this partnership, Broker A was now able to utilize TSIB’s robust resume of completed projects. At the time, TSIB had managed 1,000+ completed construction Wrap-Up programs, exceeding $70 billion in construction volume. This provided Broker A access to TSIB’s resume which solidified the message to the client that the Co-Broker partnership had the technical ability, as well as documented real-world OCIP experience.
TSIB managed the OCIP Risk Management scope and OCIP Administration. In the RFP response, TSIB highlighted how their approach includes a dedicated Program Manager to oversee each project. The Program Manager would assist the client and General Contractor (GC) with questions and manage the success of the overall project administration. This was especially important on this project as the RFP requested someone to coordinate with the GC on the dates that all trades were scheduled to arrive on-site, which would help keep the aggressive project schedule.
Broker A also had a lot of in-house experience. As such, they took the lead on the following aspects for the RFP response:
- OCIP program design and marketing
- Builder’s Risk placement
- Claims/Loss Control
THE OUTCOME
The Co-Broker partnership was awarded the contract. It demonstrated to the client that combining two experienced brokers could deliver a better value and expertise than the competition. After the award, TSIB’s Wrap Administration Service Center immediately started managing the contractor enrollment, credit verification, COI issuance, and day-to-day servicing of all the enrolled parties. The service team also managed all the data and sent various OCIP reports to all stakeholders. TSIB’s RMIS was a critical component due to the large volume of data that comes with an OCIP of this size.
The project was a success. The client was so pleased it awarded the Co-Broker partnership additional projects going forward. Furthermore, the client even directly awarded TSIB a financial feasibility study on the project. As a result of this successful venture, Broker A and TSIB grew the Co-Broker+ partnership and collaborated on other CIP’s with some of Broker A’s other clients. Without the Co-Broker partnership, none of this might have been possible and Broker A, would have lost their client all together.
For more information, please visit tsibinc.com
CA License #0E81386
Copyright © 2023 by Turner Surety and Insurance Brokerage, Inc.