Private Sanitation Company
A New York-based private sanitation and recycling client partnered with Union Risk to address unsustainably high insurance costs, which had reached $40,000 per unit in the traditional market. With $42 million in revenue and a $3 million premium, the client sought a more effective risk management approach. Union Risk introduced them to a best-in-class group captive program, reducing their per-unit cost to $17,000—a 57.5% savings. This strategic shift allowed the client to redirect significant savings into operational improvements, demonstrating the powerful financial and operational benefits of a captive insurance solution.
- Industry: Private Sanitation/Recycling
- Location: New York State
- Annual Revenue: $42 million
- Total Premium: $3 million
Challenges
Operating in the private sanitation and recycling industry, this client faced high insurance costs in the traditional market. Rates had reached unsustainable levels, with premiums approaching $40,000 per unit. The high-cost structure placed pressure on their bottom line, limiting resources that could otherwise be reinvested into their operations, workforce, and growth initiatives.
Union Risk Services’ Solution
Union Risk introduced this client to a best-in-class group captive program, tailored specifically to align with their operational and risk management standards. By joining the group captive, they gained an opportunity to manage risk more effectively, collaborate with like-minded industry peers, and reduce insurance costs significantly.
Results
After transitioning into the group captive:
✔ Unit Cost Reduction: Insurance costs per unit dropped from $40,000 to $17,000, representing a 57.5% reduction in per-unit insurance costs.
✔ Total Savings: These adjustments generated substantial premium savings, enabling the client to reinvest in safety measures, fleet upgrades, and other operational enhancements.
Conclusion
Through the group captive, Union Risk helped this sanitation/recycling client achieve considerable cost efficiencies and gain control over their insurance expenses. This case underscores the value of captive solutions for businesses burdened by high traditional market rates, showcasing how Union Risk’s customized approach can deliver real impact in cost reduction and enhanced financial flexibility.
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