Who Is This For

In the early years, some Owner/Operators may prioritize finding the lowest one-year insurance premiums, only to discover that they face significant rate increases the following year or find that their broker/firm has left the system altogether. If immediate cash flow is your sole concern (as might be the case if you're planning to sell this year), this approach might still be suitable. However, for those who intend to renew their policies, it's often wiser to choose a long-term partner known for stable premiums. 

Ideally, your office would have the staff and systems in place to allow restaurants to report claims or incidents directly to you, so  you can report and manage the claims until closure. This setup enables you to collect all the information/statements, file the claim, and work with the relevant insurance companies to provide necessary information or defense. Since some claims can take years to resolve and could impact future insurance premiums, it's crucial for you to manage these claims personally rather than delegating this responsibility to your store managers who turn-over more frequently or are not aligned financially to you on the impact of claims. 

Owner/operators generally don't opt for the least expensive homes or cars, and they usually seek quality/value/relationships over cost when it comes to hiring professionals like CPAs or financial advisors. However, especially in their early years, some may view insurance as a mere commodity rather than the complex product it actually is. These Owner/Operators quickly realize that it's more beneficial to choose an insurance broker, agent, or firm known for long-term premium stability and a track record in the industry, rather than simply seeking out the cheapest option each year. 

Owner/Operators sometimes report all property claims in the same manner as they do for coverages like Workers' Compensation and Employment Practices, which is generally the appropriate course of action for those types of claims. However, when it comes to property incidents, the most successful have found it advisable to first assess the damage relative to your deductible or another's insurance before deciding whether to involve their insurance provider.  Filing numerous claims can influence your future rates. All too often, we see situations where multiple property claims are filed, resulting in reimbursements of $10,000, only to face a $50,000 premium increase the following year. In summary, it's wise to use your property insurance judiciously, thereby maintaining your standing as a favorable client or risk. 

Your broker's role is to offer advice, provide support, and advocate for you to secure the best long-term premium and coverage options. Building a strong, collaborative relationship with your broker can be highly beneficial. When necessary, you'll want to be confident that they will fully leverage their connections with insurance companies to secure the best terms for you. In the past, some Owner/Operators may have resorted to aggressive or confrontational tactics with broker and their staff. However, it's important to remember that, just like you, brokers are also looking for the best possible client relationships. 

Insurance brokers and agents are not only licensed, but are often the most knowledgeable experts on insurance-related matters, particularly within this specific system and your brand. It's not uncommon for Owner/Operators to receive unsolicited advice from third parties, but it's crucial to recognize that these individuals may have interests that don't necessarily align with the long-term success of your business. Establishing a trusted relationship with a qualified broker or agent can provide you with specialized guidance tailored to your unique needs, ensuring that you're making informed decisions to protect and grow your business. 

Educate yourself on coverages specific to your business, receive quotes, and then make a business decision. A sample link to one such "coverages to consider" site is below which all approved brokers/firms should be able to offer/quote: www.OtherCoveragesToConsider.com

Your business/commercial umbrella does NOT insure you personally, it only covers your business.  Many Owner/Operators still do not have at least 10 million in protection via a Personal Excess policy.  Ask yourself, am I prepared for the worse case, are my personal assets protected, and can I afford a huge personal lawsuit?  You have worked too hard to lose everything.  Check with your broker/agent for options or Click Here.