Industry and Group Size

Technology (Software), Publicly Traded w/$300mm plus in revenue

Client Situation

The client produced a complex middleware software solution that was utilized in a multitude of industries in the US and overseas. Due to the rapid growth of the company, the Software Errors & Omissions policy had responded to multiple claims over the last several years, some of which were severe. Facing an expected increase in the premium associated with this policy, the company asked EBS Capstone to compete with the incumbent broker and carrier on the Software Errors & Omissions policy. The company assigned EBS Capstone three insurance companies to negotiate with, all of which had declined the risk over the past few years.

EBS Capstone Solution

After reviewing the claims history and discussing the renewal with the company's management, it was clear that the only way to get one of these carriers to offer a quote was to have a face to face meeting with the underwriters. Accordingly, EBS Capstone and the key executives of the company put together a comprehensive powerpoint presentation for meetings with the underwriters. EBS Capstone then arranged in person meetings with technology practice leaders at several insurance companies and held in depth underwriting conferences. By drilling down deeply and understanding the reasons for the past claims history, EBS Capstone and the company were able to explain why these losses occurred and how the company had made significant changes to personnel, policies and procedures to attempt mitigate losses in the future.

Result

The presentation was so compelling that one of the carriers that declined this company repeatedly over the last few years not only offered a quote, but offered a quote that was more competitive than the incumbent's renewal quote. After comparing the two proposals, the company hired EBS Capstone not only to handle the Errors & Omissions policy but also to take over the entirety of the company's property and casualty program, which included multiple locations in the US and international placements in over 30 countries.