Case study – Import and export
Background
A prospective client approached Taylor Patterson Insurance Services with a small budget and asked us to structure a cover which catered for all their liabilities as a Company and also covered their assets. The client requested this be prioritised such that all the main exposures were covered appropriately within budget. The Company was a new venture that exported and manufactured inks to China as well as the UK.
Challenges
Working within the client’s budget, the challenge was to prioritise and structure the portfolio such that any covers left out would not have a catastrophic effect on the client’s balance sheet. In addition, the risk was non-standard in nature representing a physical challenge to write the business itself due to the high risk nature of the operation. There was a real need to understand the client’s terms of sale and how a claim in China would have an effect on them. In addition there were some non-standard valuation procedures and international agreements which the client had entered into which needed to be catered for.
What Taylor Patterson did
Taylor Patterson Insurance Services reviewed and tailored the traditional covers which would normally be arranged by a typical broker to deliver a bespoke solution which met all of the client’s requirements including minimising unduly negative effects on the balance sheet. Additionally, in the form of a final client report, Taylor Patterson recommended additional covers which the client should consider in the future as the business expanded.
The Results
The client’s requirements were met with additional advice shared as to how the covers operated and what this meant for the client’s business. The client’s statutory obligations were highlighted and Taylor Patterson demonstrated that these had been met with the appropriate insurance cover. A solution was found to fix an appropriate valuation such that the client’s goodwill would be maintained in the event of a Marine loss. A follow-up visit was also arranged to discuss the re-budgeting of the client’s insurance arrangements for the following year.
