Protecting a Historic NYC Institution: Optimizing Coverage and Reducing Costs by 25%
The Situation
A prestigious New York City private club occupying a historic landmark building engaged ALS to conduct an independent review of its insurance program. The club maintained a significant Fine Arts collection, including rare and high-value pieces, creating complex and elevated risk exposures. Initial findings suggested both coverage gaps and pricing inefficiencies within the existing program.
The Challenge
The organization faced several critical risks:
- Inadequate Fine Arts coverage relative to actual asset values
- Misalignment between policy limits and exposure
- Overpriced insurance program compared to market benchmarks
- Specialized risks tied to a historic structure and valuable collections
Without correction, these issues could result in significant uninsured losses and unnecessary premium spend.
The ALS Approach
ALS conducted a comprehensive, data-driven assessment of the club’s insurance portfolio:
- Evaluated property, liability, and Fine Arts coverage structures
- Reviewed asset valuations and underwriting assumptions
- Benchmarked pricing against comparable institutions
- Identified structural inefficiencies and coverage deficiencies
- Engaged leadership to align insurance strategy with asset value and risk tolerance
The Solution
ALS implemented a strategic restructuring of the insurance program:
- Transitioned core coverages into a Real Estate Risk Purchasing Group (RPG) to improve pricing and stability
- Secured broader coverage terms through enhanced underwriting leverage
- Designed and placed a dedicated Fine Arts policy with:
– Accurate, appraisal-based valuations
– All-risk coverage structure
– Protection for on-site, off-site, and transit exposures
– Coverage aligned with museum-grade standards
The Outcome
ALS delivered measurable improvements across cost, coverage, and program structure:
- 25% reduction in annual premium, generating approximately $60,000 in savings
- Fully corrected and enhanced Fine Arts protection
- Broader, more competitive coverage across all lines
- Improved long-term program stability through RPG participation
Client Impact
- Achieved significant cost savings without sacrificing protection
- Secured appropriate coverage for irreplaceable Fine Arts assets
- Strengthened overall risk transfer and financial resilience
- Gained access to more competitive and stable insurance markets
- Aligned insurance program with best practices for historic properties
Why It Matters
Organizations with unique assets—such as historic buildings and fine art collections—require specialized insurance strategies. ALS delivers tailored solutions that enhance protection, reduce costs, and ensure long-term alignment between risk exposure and insurance structure.
