If the pandemic taught us one thing, it’s that risk is a constant threat to business. There are dozens of unforeseen circumstances that could leave your business in a financially delicate position, damage your reputation or discourage loyal customers from returning. And in the restaurant industry, that lesson is magnified tenfold. For restaurant owners and operators, having the support of a strong insurance partner is critical, in good times and in bad.
The key to a good insurance partner relationship
Whether you decide to contact a provider directly, use an online marketplace or work with an insurance broker, the key to fostering a good insurance partner relationship is the same: You have to take into account the nuances of your restaurant or food company’s needs, and the risks your business faces. While it’s true that all restaurants face the same core set of threats, like equipment breakdowns and staff injuries, there are specific risks that may pose a specific threat to your business that must be kept in mind.
For example, if your business is a liquor-focused concept, you run the risk of customer intoxication, which might lead to property damage. If you’re a sushi restaurant working with raw ingredients, there might be an elevated risk of food spoilage or contamination. Whatever the situation may be, knowing the risks that pose the greatest threat to your business is the key to identifying the right insurance partner.
A strong insurance partner goes beyond the basics
Most restaurant owners and operators think general liability coverage is all their business needs to be protected from the risks they face every day. A strong insurance partner will educate you and your team on the benefits of broader coverage and do everything in their power to make sure your restaurant is fully insulated from these risks and the lasting impact they can have on your business operations.
For example, one option that lies outside of general liability is a trade name restoration program. Recently, a restaurant client of ours with a multi-state presence and hundreds of locations suffered a big-time foodborne illness loss that might have significantly impacted the business, had it not been for trade name restoration. By stepping in and advising our client, they were able to save millions of dollars in lost revenue and unexpected expenses.
A strong insurance partner has an even stronger track record
Having an insurance partner that can educate you on all your coverage options is great — and it’s even better when that partner has a history of setting other restaurants up to succeed, even if that success looks different on a case-by-case basis. As a result of our 115-year legacy, we’ve been able to work closely with countless restaurant clients. Whenever we begin a relationship with a new client, we’re able to pull from our successful track record to create unique solutions that fit new clients’ needs and address the issues they want to prevent from happening.
It's hard to qualify or quantify how important it is for restaurants to have the support of a strong insurance partner. Whether you’re choosing to contact a broker directly, buy a policy from an online marketplace, or work with a broker, there’s no question that the value of having a strong partner relationship is the same.
AUTHOR BIO
Matt Mallory is the CEO of the Mallory Agency, a leading property and casualty insurance broker serving clients in the United States and beyond. He primarily partners with larger companies and organizations on their insurance needs.
