StantecEngineering a New Risk Management Approach

FRESH THINKING AFTER MAJOR ACQUISITIONThe architects, engineers, and other professionals at Stantec are familiar with big challenges and risks. They work around the world, often in diffi cult circumstances, to create, renovate, and improve bridges, water systems, stadiums, and a wide array of other facilities. Governments, corporations, and communities depend on their expertise.

In turn, Stantec has chosen the Lockton Global team for its expertise on risk management and insurance to deal with some of Stantec’s toughest business issues.

The Lockton Global partnership—with Lockton and BFL Canada playing leading roles—provides Stantec with advice and brokerage support on its professional liability, property and casualty, directors and offi cers, and other risk management programs.

Stantec is a leading engineering

and architectural fi rm based in

Canada with more than 22,000

employees working in more

than 400 locations across six

continents. Stantec collaborates

across disciplines and industries

to bring buildings, energy and

resource, environmental, water,

and infrastructure projects to life.

DAVE PYM, Director,

Risk Management, Stantec

Says Stantec Risk Management Director David Pym,

“We needed somebody that had the depth and

breadth of service throughout the global network

that understood the risks.”

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“We’re always looking for ways in which we can mitigate against any losses that we might be exposed to, whether it’s property losses, personnel losses, liability losses, or losses to our fi nancial bottom line,” says Pym.

Complex Risks, Tough Negotiations, Incredible Results

Given the nature of its business, Stantec’s single biggest risk is professional liability. A strong safety culture, robust staff training, and detailed contract reviews help Stantec mitigate the risks. But the size and scope of its business combined with a litigious environment in many of its territories means that a well-structured professional liability insurance program is critical to the business.

Stantec also faced an added complexity: integrating the professional liability program from a major acquisition, MWH, a nearly 200-year-old global infrastructure fi rm. MWH engineers, constructs, and manages some of the most complex water, hydropower, mining, and transportation projects in the world.

The Lockton team recommended a major program restructuring to expand coverage while reducing cost.

Pym says the team delivered “innovative ideas that have borne incredible fi nancial results for us.” Lockton helped Stantec lower its professional liability premium by more than $4.5 million with expanded insurance limits, more diversifi ed coverage, and greater protection.

“The Lockton team pulled off some miraculous things at the eleventh hour that have borne fruit,” Pym says. “There were tough negotiations in the trenches, but I think those [insurer] relationships have enhanced.”

Meeting with Stantec team and Lockton Global.

© 2017 Lockton, Inc. All rights reserved. KC: 29461 3

Putting Stantec First

Pym commends the Lockton Global team for delivering a unique combination of expertise and attitude.

“It’s been fantastic,” he says. “When you have a diverse team that has the depth and breadth of talent that the combined group has, you get remarkable results.”

Stantec has shifted from being in “reactive mode”with its previous brokers to a “proactive mode,” planning ahead six to twelve months on risk program enhancements, including expanded use of captives.

“Lockton helped make our business better by being a true strategic partner that cares about the results that are achieved,” Pym says.

Stantec’s design team worked to completely transform the iconic BC Place stadium in Vancouver,

British Columbia from a tired, outdated facility into a vibrant center of the surrounding community.

“I’ve never seen Lockton put itself fi rst in terms of anything it

does for us,” Pym says. “It’s all about us as a client.”