Lockton | Staffing/Employee Leasing

Staffing / Employee Leasing

To meet the challenges of one of the world’s fastest growing industries, Lockton’s associates dedicated to Staffing and Employee Leasing stay abreast of the most current industry issues through organizations such as the National Association of Alternative Staffing (NAAS), the National Association of Professional Employer Organization (NAPEO) and the National Association of Temporary & Staffing Services.

In addition to a clear understanding of your business from an operational perspective, Lockton offers creative solutions and resources controlling the cost of claims and risk financing.

Your company will benefit from our expert consultation in the areas of:

Cost/pricing allocation models
Contract review support – assisting you to negotiate acceptable terms
Efficient collateral solutions
Low-risk transfer costs and visibility into how they are determined
Post-injury claim management to address the biggest cost driver

Lockton Service

Service starts with listening. We take the time to understand your specific goals, design a program that fits your needs, aggressively negotiate coverage, and implement a service plan. You will have the same dedicated service team throughout the entire process which allows us to anticipate your needs and create accountability.

It’s all about you. As a private, family-owned company, all our Associates focus solely on you, our client, rather than public shareholders.

Long-term thinking. Clients stay with us based on our expertise, creative solutions, seamless global resources and outstanding service. Our client retention rate of 95 percent reiterates our commitment to each and every client.

Success Stories:
	Last-minute meeting decreases carrier's collateral requirements A major U.S. publicly-traded staffing company called Lockton 45 days before its January 1 renewal. The company had just been informed by its current broker that collateral requirements would be increased significantly due to a delay in its SEC filings. Discussions with senior management led to the company choosing Lockton as their broker 29 days prior to the renewal date. On the first day as the company’s broker, the Lockton team met with the scheduled a meeting between the underwriting manager and senior credit manager of the carrier and the senior management of the company. The call resulted in a significant rate decrease and the easement of a potentially leveraged position.

	Deductible lowered with no additional premium A major division of a publicly-traded conglomerate had significant financial leverage and below-investment-grade credit ratings. The company was told by their previous broker that there were no remedies for the collateral requirement being imposed by the primary carrier. The Lockton team reviewed the new client’s loss experience and found factors that impacted the company’s credit, but were not indicative of the risk profile. Lockton was able to lower the deductible with no additional premium, establish a line of communication between the company’s CFO and the carrier’s credit officer, and model the cost/benefit of various collateral structures. All of these solutions resulted in improved credit and a dramatically lower collateral requirement.

	Surcharge reduced through meeting with carrier A publicly-traded company filed Chapter 11 bankruptcy a few months prior to their casualty insurance renewal. Due to the filing, all carriers were requiring a surcharge on the collateral. Lockton scheduled a meeting with the client’s CFO, the reorganization firm and the chief credit manager from the carrier. The Lockton team was able to show the positive underlying financial strength of the company, which reduced the surcharge. The Lockton team was also able to secure a credit default indemnification contract, a solution which further assisted the insured during its liquidity crunch.

	Reserve reductions obtained for 50% of files A national staffing company became concerned with the level of outstanding reserves on their workers compensation program. They have a cost sensitive program, and the reserves have a direct impact on their bottom line. As a result, they requested an interim, emergency review of their claims. The total incurred losses for this client were nearly $800,000, with many of the claims being relatively old, and the reserves developed. Lockton arranged a telephonic claim review with representatives from the carrier and client present. This was done with only a few days notice, and with little time to examine a tremendous amount of information. A total of 46 files were selected for examination, and status reports prepared. A reserve analysis was done as a part of this process. Out of 46 claim files reviewed, reserve reductions were obtained on 23 files, for a total of $85,148. This represented ten percent of the overall total incurred. In thorough analysis of the files and meeting our obligation to obtain not only lower, but appropriate reserves commensurate with the exposure, three files did require reserve increases in the amount of $44,805. This diminished our total reductions to six percent, but still represented a significant reduction for the insured, and a more accurate reflection of their total losses.