For businesses throughout the United States, 2008 and 2009 were years marred by economic turmoil, the Great Recession, forcing companies to grapple with massive financial challenges. Layoffs, lower productivity, and razor-thin profit margins defined this bleak era. But for this Cable Construction Company, the situation was even more dire. As an already struggling business, it faced an unexpected and devastating event that nearly brought the company to its knees: a tragic workplace accident that claimed the life of an employee on January 7, 2008.
This heartbreaking incident was an emotional blow to the business, but it also carried severe financial consequences. The company’s insurance costs spiraled out of control, skyrocketing from a manageable $13,000 per month to an unsustainable $37,000. Over the course of two years, these crippling premiums drained the company’s resources and jeopardized its competitiveness.
It felt as though the business was working solely to pay its insurance costs. Debt piled up, and the path to survival seemed increasingly uncertain—until a chance meeting with David Leng changed everything.
The Turning Point: A Holistic Approach to Insurance Solutions
Like any desperate business owner, the president of the Cable Construction Company initially sought help by turning to friends, competitors, and called many insurance agents. What followed was a frustrating series of underwhelming options. Despite reaching out to several agents promising to “save money,” the quotes he received were still exorbitant. Shockingly, some estimates were even higher than Pennsylvania’s “insurance company of last resort”—the Pennsylvania State Workers’ Insurance Fund. The “best” quote wasn’t much better, offering only a negligible 10% reduction in costs. It became clear that simply shopping around for quotes wasn’t going to solve the problem.
The Cable Construction Company sought advice from experts in insurance risk management, who used strategies outlined in The 10 Laws of Insurance Attraction to transform their business. “Rather than focusing solely on quotes, the company adopted a strategic, risk-based approach to insurance. Instead, they delved into the company’s operations, policies, and risk management practices. Their mission: to make the Cable Construction Company a more attractive risk for insurance providers.
Our first step was an extensive review of the company’s operations. He and his team evaluated systems, poured over the books, and scrutinized past policies and procedures, identifying areas for improvement and errors that had previously gone unnoticed. What distinguished Leng’s approach was his refusal to settle for the status quo. As the business owner recalls, Leng promised, “We’re not leaving here until we get your rate down.” And he delivered on that promise.
Results That Transformed the Company
Within just two months, Leng’s strategies produced remarkable results:
- Recovering Costly Errors: The process uncovered $86,000 in premium errors that the company’s previous agent had missed over two years. These recoveries were funds that immediately went back into the company’s pocket.
- Operational Overhaul: By completely revamping the company’s hiring, training, and employee management processes. By addressing workplace safety and risk management practices, they positioned the company as a safer and more desirable policyholder in the eyes of insurance carriers.
- Premium Reduction: After repositioning the company, they negotiated new policies on their behalf. The result? A reduction of workers’ compensation premiums by 41%. This extraordinary savings, combined with the recovery of past overpayments, returned over $200,000 to the struggling business in a matter of months.
This newfound savings gave the Cable Construction Company the financial breathing room it so desperately needed. With premiums under control and operational improvements in place, not only did the company survive—it flourished.
Lessons from the “10 Laws of Insurance Attraction”
This case exemplifies the core principles outlined in David Leng’s book, The 10 Laws of Insurance Attraction. The innovative framework emphasizes a proactive and strategic approach to insurance management, moving beyond the traditional method of simply shopping for quotes. Some of the key takeaways from both this case and Leng’s philosophy include:
- “You Don’t Control Costs by Getting Quotes, You Control Costs by Controlling Risk”
The methodology underscores the importance of risk management. By improving workplace safety, implementing better hiring and training practices, and developing a comprehensive loss control strategy, businesses can make themselves more appealing to insurers.
- “Reposition Your Business to Insurers”
Insurance companies reward businesses that demonstrate they actively minimize risk. As evident in this case, repositioning the Cable Construction Company as a lower-risk insured was vital in securing better rates.
- “Errors Cost You Money; Fixing Them Saves You Thousands”
The discovery of $86,000 in previously overlooked premium errors shows how even small oversights can lead to massive financial consequences. A thorough audit from a qualified advisor can uncover these costly mistakes.
“The True Cost of Insurance is More Than Just the Premium”
- Leng emphasizes that insurance costs go beyond monthly premiums, encompassing hidden expenses like inefficiencies, claims mismanagement, and lost productivity. Addressing these areas can reduce overall costs significantly.
A Roadmap to Success
This transformative experience not only saved the Cable Construction Company from financial ruin but also reshaped its future. By following The 10 Laws of Insurance Attraction’s approach, the company gained a roadmap to sustainable growth, higher profitability, and an insurance program that fostered—not hindered—its success.
For business owners grappling with high insurance costs, this case study serves as a powerful reminder: There is always a better way. Simply receiving quotes from agents isn’t enough to achieve meaningful cost reduction. Only by addressing the root causes of high premiums—risk factors, operational inefficiencies, and errors—can companies take control of their insurance programs.
A Final Word
The president of the Cable Construction Company sums up the experience best:
“David Leng and the team at Duncan did a remarkable job. He literally kept us alive, and now it helps us to thrive!”
The tools, strategies, and insights offered in The 10 Laws of Insurance Attraction are more than just solutions—they’re a lifeline for businesses looking to regain control of their bottom line and their future.