Proactive insurance management saves trucking company $145,000+

The client

Niece Trucking (NTI) is a trucking company based in Des Moines, IA. Founded in 1994, this family-run business now operates 60+ power units and employees approximately 100 people.

In November 2012, NTI was acquiring a small trucking company, which was a Kingsgate insured. The parent company had elected to form a new entity to operate this enterprise, Niece Express (NEI).

The challenge

Niece came to Kingsgate seeking coverage for its Auto Liability, Auto Physical Damage and Cargo insurance. Initially, the company had purchased workers comp coverage for Niece Express from its current insurance agent—but, because it wanted to separate the Niece Express coverage from that of the parent company for accounting purposes, it then asked Kingsgate to also review the workers comp program.

The solution

Kingsgate agreed to review NTI’s coverage. As is typical for Kingsgate, the review was far more thorough than required and identified anomalies in in the historical payrolls reported on the Experience Rating worksheet.

Among them, the company’s payroll was close to $2 million, but, during one year, this figure had been reported as $40,000—an error that significantly impacted its workers comp premiums. In addition, the opportunity to use the successor entity rule for NEI, along with combining entities with common majority ownership, had not been executed. These oversights could have cost the company $71,646 in avoidable premium.

Kingsgate’s discoveries represented opportunities for NTI to save money while protecting its employees the company.

“Kingsgate helped us recover a lot of money through our workers comp program,” said Ken Niece, president of Niece Trucking. “That really got the relationship going.”

The results

NTI elected to have Kingsgate manage its workers comp program from that point on, and today, Kingsgate currently handles all of NTI’s and NEI’s insurance policies.

“Kingsgate customized everything about our program,” said Niece. “They worked directly with payroll and billing to keep on top of the workers comp issues and deductions, so that as our wages grew, we didn’t have a huge cost at the end of the year.”

Kingsgate now manages the audit process for NTI and NEI, ensuring the accuracy of the program through Kingsgate’s Zero Audit Error Guarantee. In addition, Kingsgate also has managed three claims for the NTI companies that historically would have been lost time claims. Instead, these claims were addressed through Kingsgate’s Back on the Job program. Through this program, Kingsgate works with its insureds and their HR departments to identify work that claimants could perform for the company until they are able to return to their full-time position. This reduces the amount of lost wages paid and the resultant increases in workers comp premiums.

For example, before Kingsgate began assisting NTI, an employee was injured on the job, paying a total of $6,180. Of that total, $2,847 was for lost wages. As a result, this claim cost the company $13,563 in additional—and avoidable— premium.  By comparison, the three claims under Kingsgate’s Back on the Job program totaled $18,489.  Historically, these claims would have cost the company an additional $40,724 in additional, avoidable premium.

However, in less than five years, the proactive value-added work Kingsgate Insurance has performed has resulted in savings of $145,138 for the companies.

The important extras

While the savings are impressive, Niece Trucking also values other things about its relationship with Kingsgate.

“They’re always finding ways to help us reduce our cost for insurance,” said Niece. “And their customer service is very good. They’re not a ‘big box store,’ but they treat everyone as a huge customer.”

Niece said he has, and will continue to, recommend Kingsgate to others in the trucking industry in Des Moines.

“Kingsgate is a family-run business with family values,” Niece added. “That’s huge to me, because that’s how I built my company.”

If you’d like Kingsgate to review your workers comp program—or any of your coverages—and identify potential opportunities for savings, contact [name] at [number/email].



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