Case study · Motel, RV Park & Campground
A motel and RV park raised building and profit limits while cutting premium 11%
How Summit documented a combined motel and RV park's risk management, increased building limits to true replacement value, secured business interruption cover for profits, and reduced premium by 11%.
The challenge
A combined motel and RV park operation was dealing with increasing premiums and insufficient coverage limits, particularly for buildings and business profits. The incumbent insurer was not offering competitive options, and the client felt their unique operational risks were not adequately portrayed to the insurer by their broker.
The client was never given alternative options to compare against their renewal terms and was told market pricing left no other options.
What Summit did
The client hired Summit as their broker. Summit reviewed the client's risk management practices — including property maintenance procedures, fire safety protocols, and general liability exposure — to present a well-rounded risk profile emphasizing the proactive measures in place.
Summit audited existing policies and held an underwriting call to understand the business model, seasonal fluctuations, and the importance of protecting profits during operational interruptions. The submission was repositioned to show increased building limits, operational security, and the business's robust risk management program, generating a more attractive risk profile.
The results
Increased building and profit coverage. Raised building limits to reflect the true replacement value of the motel and park facilities, and ensured profits are covered in the event of business interruption.
Flexible deductible options. Offered multiple deductible options so the client could choose based on risk tolerance and financial preference.
Competitive terms in a hard market. Secured competitive terms aligned with the client's needs despite challenging market conditions.
11% premium reduction. Effective negotiation and market positioning reduced overall premium by 11% without compromising coverage.
A well-documented risk profile, thorough underwriting due diligence, and competitive market options combined to deliver a better insurance program.
“By conducting a comprehensive review and revamp of our client's risk management procedures we were able to secure more favourable terms, increased coverage limits, and significant cost savings. This case highlights the power of tailoring insurance strategies to reflect the true value and risks of a business, ensuring the best possible outcome for the client.”