Equipment Coverage

Introduction

   Bob Turner Agency, Inc. in partnership with our specialty carriers offer an alternative to traditional equipment maintenance agreements. 
   This program offers the most competitive industry pricing, flexible terms, and individual customization possible.  The program offers an alternative to outdated traditional contracts and maintenance insurance.  This program is designed to use components of both insurance and self-insured retention plus technical expertise, loss control, and information management to assist in budget development and implementation that produces cost savings to your facility.   Many clients across the United States and Canada have saved over 42% of their annual budget by utilizing this proven system.

Benefits

An equipment coverage program is designed to replace traditional manufacturer's service contracts and/or maintenance insurance.  The policy provides clients with a solution to the maintenance management problem.  These solutions consist of the following:

1.      Average savings of 20% to 50%.
Equipment Coverage contains a guaranteed initial savings over the traditional vendor service contracts or maintenance agreements.  The program establishes a premium cost for budget protection insurance,  A self-insured retention budget or aggregate deductible is established for routine maintenance.  This creates a substantial cash flow advantage for the client by reducing the cash outlay for insurance or vendor service contracts.  Successful maintenance cost containment will provide additional savings from the balance of funds remaining in the aggregate deductible budget.

2.      Insured Maintenance Budget
The program combines budget protection with the technical and administrative expertise to guarantee the minimum savings by reimbursing the client for all repairs over the aggregate deductible.

3.      Maintenance Management Improvement
Equipment Coverage consolidates all equipment to one maintenance agreement with fewer exclusions and broader coverage.  This eliminates the cost of multiple service contract management with each contract's varying service provisions and optional coverage.  This feature allows clients to use their choice of service providers to effect repairs on a time and materials basis.  This offers the client the most cost effective services through a more competitive procurement process.

4.      Technical consulting and reports
The carrier of choice provides technical consulting in the following areas:

*Capital equipment replacement recommendations
*Competitive service providers
*Loss history analysis
*Parts acquisition
*Preventative maintenance budget and schedule
*Program implementation and cost control training
*Repair cost review
*Vendor/service provider cost negotiations.

5.      In-house Reimbursement
Equipment Coverage will reimburse the in-house repair cost, allowing for greater cost reduction.  This creates the opportunity for the financial justification of improving in-house technical staffing and training.

Technical Services

Loss Control

Consultants provide the technical support. EC is responsible for implementation and training of the loss control management policies and procedures that will be a vital part of the program's success.  These loss control policy and procedure guidelines and customized to meet each client's specific requirements.  The program does not necessarily change the service provider; it jus changes the method of payment.  By paying only when you use the service, overall cost is reduced by increasing competition for the service dollar.  Further savings can be leveraged through the benefits of the comprehensive loss control information.

The policy provides alternative parts and service sources during the repair process.  All parts and service alternative providers have been screened by the carrier and all parts are equal to or superior to Original Equipment Manufacturer's specifications.  This approach has demonstrated that the use of alternative competitive parts and service sources has greatly reduced cost.

Information Management

Consultants use the client supplied field service reports and service invoices to establish the payment history.   The monthly Loss History report becomes the basis of the information used  to control long-term cost (Asset Management).  The monthly report provides not only an itemized cost of all service performed but also a record of all preventative maintenance done and when the next service is due.
Additionally, the information will provide management with a tool to make important future cost effective decisions.   The information includes:

Cost Analysis

Detailed cost analysis can determine whether a piece of equipment should be replaced, based on the trend of supporting cost.  This analysis will also give the client the total dollars spent with each vendor, providing a negotiation tool to leverage additional savings in services rendered and capital equipment purchases.

In-House Utilization

In-house technical support staff utilization is determined by reviewing the cost per equipment area and based on dollars spent, establishes the financial justification for development of cost effective in-house support.  These decisions can add thousands of dollars to the bottom line of the client's overall budget savings.

Total Quality Management

Total quality management provides the client with true long-term cost of ownership.  This program achieves this goal by documenting total cost and providing the information necessary to make long term projections for service cost, personnel utilization, and capital equipment purchases.

Program Benefits

·         Immediate cost savings of 20% to 50% over Manufacturer's Service Contracts

·         Cash Flow:  The organization purchases an excess insurance policy from Kemper Insurance to cap the annual maintenance budget.  The remaining budget amount (aggregate or self-insured retention) may be invested until required to pay for preventative maintenance or repairs of covered equipment.

·         Self-insured retention fund is managed and controlled by the organization.

·         Coverage includes 24 hours per day / 7 days a week - labor, parts, travel, overtime, shipping, telephone support, in-house labor, expediting expenses, loaner equipment, operator error, and preventative maintenance.

·         The organization has autonomy on selection of vendors to provide service.

·         Consultants provide technical expertise before, during and after maintenance events.

·         Comprehensive equipment coverage

·         Loss History Report documents maintenance activities by equipment item.

·         Quality review of all maintenance invoices.

·         Program implementation and cost-control training.

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Eligible for Coverage: