Case Study – Food Distributor/Restaurant Franchisor

Case Study – Food Distributor/Restaurant Franchisor

This food distributor, restaurant franchisor, and restaurant operator reached out to our professionals after a new CFO was hired. The previous CFO had traditionally viewed insurance as a commodity. With less than 45 days before their renewal, our team began the Risk Management Process which resulted in a positive outcome.

Our team began the process with Exposure Identification which uncovered problem areas that needed to be addressed. We developed an action plan and strategies to handle their current risks in addition to developing a plan for future success which ultimately led to a 65% reduction in their insurance costs over a five year period.

Problems Identified
  • Separate Insurance Companies for Different Lines of Coverage: The program was very fragmented with five different insurers involved. This led to inefficiencies plus additional costs and fees incurred by the client.
  • Automobile Liability: The large fleet of distribution vehicles were not covered in the company’s Excess/Umbrella Liability program.
  • Transportation/Cargo: Insured engaged in back-hauling and it was discovered that there was no coverage for owned and non-owned goods while being transported.
  • Workers Compensation: Claim frequency and severity increased the Experience Modification to 2.11. The current insurance company was not offering renewal.
  • Franchised & Leased Properties: The client leases real-estate to franchise partners and it was discovered that some franchise partners did not have the proper insurance coverage in place.
Solutions Provided
  • Consolidated Program: Worked with a market leading insurer to provide all lines of coverage which reduced insurance program premiums and fees.
  • Experience Modification: By implementing safety programs and claims review meetings, we assisted in decreasing the client’s Experience Modification from 2.11 to 0.90 over a five year period.
  • Automobile Liability: Fixed the Excess/Umbrella Liability program so that coverage applies to the delivery fleet.
  • Transportation/Cargo: Added cargo coverage for owned and non-owned goods while being transported.
  • Franchised & Leased Properties: Worked with client’s general counsel to rewrite the insurance requirements for franchise partners. Also developed a manuscript property form to cover client’s contingent liability for leased locations.

Case Study 3