IDG Security turns to Bellwood Prestbury to cover large-scale Afghanistan operations
29 May 2015
IDG Security, one of the most respected global security groups, has turned to Bellwood Prestbury to create a bespoke high-risk combined liability insurance package to meet its contractual obligations for a number of large-scale operations in Afghanistan.
A wide range of services and broad cover requirements
IDG provides a range of services including armed and unarmed personal security, consultancy, training, mentoring, close protection, specialist dog teams and premises protection. These are high-risk operations in a high-risk territory that can’t be covered by standard insurance.
David Willis, Chief of Staff at IDG Security explains that they approached Bellwood Prestbury because they wanted to be sure that IDG was getting the right protection – and was paying the right price.
“As our business in this area has grown, we had put various insurances together to cover different parts of our liabilities. We realised that we needed a specialist to assess whether we were properly covered, and so we approached Bellwood Prestbury, an independent firm with real expertise in our sector.”
Starting with a high-level audit
Bellwood Prestbury began with a high-level audit, comparing the requirements of the various contracts with the insurances IDG had in place. The firm then considered possible alternatives.
As an independent expert, Bellwood Prestbury is able to assess all of the international products on the market. The firm also works with underwriters at Lloyd’s of London and has the capability to create bespoke cover.
A bespoke solution to improve quality and cut costs
Peter Bellwood, Managing Director at Bellwood Prestbury explains that it quickly became apparent that a bespoke policy could improve the quality of cover and reduce premiums. Peter explains:
“We have a unique facility with Lloyd’s, London not available to other brokers that enables us to create a single combined liability policy that packages all of these high-risk insurance needs together. That ensures there are no disagreements between insurance providers and no gaps in cover. Packaging all the cover together also gives us additional buying power, so we not only improve the quality and scope of cover, we can reduce overall premiums too.”
Reducing upfront costs and easing cash flow
With its special relationship with the Lloyd’s market, Bellwood Prestbury can also affect the terms of the insurance cover, improving cash flow and reducing risk for the client.
For the IDG policy, Bellwood Prestbury set it up on a quarterly reporting cycle. Instead of a significant upfront deposit that is then reviewed at the end of the year, their policy is reviewed quarterly and IDG’s premium is based on quarterly turnover in the contracts under cover.
Peter Bellwood explains:
“If a client pays annually and the value of the contract is reduced throughout the year or is cancelled, that hefty upfront deposit can be lost. If it goes the other way, the client can get a nasty surprise at the end of the year. Quarterly reporting reduces that risk, reduces the impact on cash flow and ensures premiums genuinely reflect the activity on the contract.”
Simplifying administration too
By placing all of the insurances for multiple contracts with one underwriter, administration becomes simpler too. Renewals and billing is all streamlined and happens in the same period.
Bellwood Prestbury takes care of all the administration on behalf of its clients and oversees any claims, making liability coverage much easier for the client.
The last word
David Willis, Chief of Staff at IDG Security says that he has been very impressed with the service he has received and the outcome:
“Starting with an independent audit enabled me to see that Bellwood Prestbury really understood our needs and the marketplace. To have such a specialist UK firm come to Dubai to work closely with us is a real asset. Their relationship with underwriters at Lloyd’s of London has given us access to unique cover we couldn't have found elsewhere. At the end of the day I am confident that we now have better protection. The bonus is that we have also saved significant sums on premiums too.”