McKee explains that there is a cost associated with writing a check. One of his prospects is a large grocery store chain. But we also looked at potential soft dollar savings. The chain had approximately 500,000 invoices for equipment maintenance and repair. In fact, insurance programs vary widely.
Some insurance companies go back to vendors and renegotiate on time and material.
Some are trying to create a preferred vendor network. McKee suggests that agents make certain the program matches the needs of the clients. For larger clients with a lot of equipment, complete outsourcing can produce soft dollar savings and gets them out of the asset management business. The insurance company will come out and asset tag every piece of equipment. Essentially, your client is getting an asset management program and saving money.