Casestudies.
4 hospitality groups before and after a program review.
Book a call5 cafes
Renewal offers arrived up to 65% higher, on policies that left out more than the owners knew.
Before
- Renewal offers up 65% and 33%At 2 of the cafes, for the same coverage.
- Mostly surplus lines carriers3 of the policies had no state fund behind them, with taxes and fees on top.
- Exclusions in the endorsementsOne policy excluded abuse claims and animals, and its property coverage left out theft and wind.
- Audited on sales with a minimum premiumA good year meant a bill and a slow year meant no refund.
- 4 renewal datesOne for each cafe, spread through the year.
After
- One admitted programLiability, liquor, property and employment practices for 4 cafes on 1 policy, with the fifth being added.
- Clean coverage formsStandard wording with far fewer exclusions.
- Not audited on salesNo audit and no minimum earned premium.
- Well below the renewal offersWith property and employment practices coverage at every cafe included.
- 1 renewal dateThe cafes renew together.
7 sports bars
The whole group was on one surplus lines policy, with a single limit shared by every location.
Before
- A surplus lines carrierThe carrier’s own wording, with taxes and fees on top.
- One limit shared by every locationA bad year at one bar could use up the limit for all of them.
- Assault and battery capped at a quarter of the limitWith the lawyers’ costs counted inside the cap, and excluded outright on the liquor and excess policies.
- A deductible on every claimApplied to defense costs as well.
- Audited on salesWith a quarter of the premium kept by the carrier from the first day.
After
- An admitted carrier for 5 restaurantsNot audited on sales, with no deductible.
- Double the limit at each restaurantEach one has its own limit instead of sharing one.
- No assault and battery exclusionOn the policy that covers those 5 restaurants.
- About 19% less in totalFor the liability and excess coverage, against the policies it replaced.
- The late-night bar placed on its ownIt stays in the specialty market, where it fits, and renews with the rest.
- One date for liability and compThe liability program was lined up with the workers’ comp renewal.
3 fine dining restaurants
3 restaurants were insured through 9 policies that had never been looked at together.
Before
- 9 policies for 3 restaurantsLiability, property and comp bought separately at each one.
- 5 renewal datesA renewal to deal with every couple of months.
- Mostly surplus lines carriers6 of the 9 policies had no state fund behind them.
- Coverage that differed by restaurantOne renewal offer excluded abuse claims, animals and medical payments, and required that there be no security and no entertainment.
So far
- 2 restaurants on 1 admitted policyLiability and liquor, not audited on sales, at about the same price as before.
- The rest move as they renewEach policy joins the program on its own renewal date, so nothing is cancelled early at a penalty.
- 3 policies and 1 dateWhere the program is headed once the last policy has renewed.
A nightclub and 4 restaurants
The group came to us with a low premium on its nightclub and a policy that left out the claims a nightclub has.
Before
- A low premium on the clubThe price reflected what the policy left out.
- Assault and battery excludedNothing for a fight or a security incident.
- Abuse and molestation excludedAlong with animals and performers.
- Rated on part of the salesTicket and cover charge sales had been left out of the figure the premium was based on.
- 2 restaurants on 1 policyOne of them had not opened yet, so the group was paying for it early.
After
- Assault and battery and abuse coveredUp to a set limit, where the old policy paid nothing.
- Rated on the club’s real salesThe premium is based on everything the club takes in.
- The club pays about 83% moreThe owners chose it knowing what the old policy would not have paid.
- 2 restaurants not audited on salesOn an admitted program, with the liability limit their lease requires and property coverage they did not have.
- The unopened restaurant flaggedTo be put right when that policy comes up for renewal.
What the 4 had in common
Different businesses with the same handful of problems.
Coverage read before price
In every case the problems were in the endorsements, not on the summary page.
Admitted carriers where the business qualifies
Clean forms, direct billing and the state fund behind the policy.
Programs not audited on sales
The premium agreed at the start is the premium for the year.
Renewal dates brought together
So the group is looked at as one account, once a year.
Sometimes the right program costs more
The nightclub pays more than it did, because the old policy would not have paid.
An advisor through the year
We work as an extension of the group’s own team, not a quote once a year.
Will our group get the same result?
Not necessarily. Each of these depended on the group’s locations, its claims and how it operates. The review tells you what applies to yours before anything changes.
Do you always lower the premium?
No. One of these groups pays about 83% more for its nightclub, because the old policy excluded the claims a club is most likely to have, and another pays about the same as before for better coverage. The review shows the price and the coverage side by side, and the owners decide.
How long did these take?
It depends on the number of locations and policies. A review should start 4 to 5 months before the renewal date, and anything that cannot wait is fixed mid-term.
Start with a program review.
Book a call and walk us through the group. If a review makes sense, you send the current policies and the findings come back in writing.