By Jeff Corder, vice president, loss control, AmTrust North America

With more than 550,000 restaurant establishments in North America with a combined annual revenue exceeding $400 billion, the restaurant industry is second to none in size, according to the National Restaurant Association. The association also states that the employee base is projected to reach 14 million employees by the end of 2012, making this private industry the nation's largest employer outside of government.

A market of this size and scope is a goldmine for the insurance industry; smart brokers, agents and carriers are all vying for a piece of the action. But with all that competition, those who will win are those who position themselves as experts and can bring value to the table.

One of the most effective ways for an agent to add value to the insured/carrier relationship is to leverage the expertise of an insurer's loss control department. Savvy business owners are looking for more than just price differentiation when it comes to their insurance coverage. They want a committed, knowledgeable, trusted advisor who understands their business challenges, risks and hot-buttons and who can help control their costs through education and prevention.

The best news about this valuable relationship builder is that most loss control services are offered for free. Your insurance carrier may provide:

Site visits to pinpoint hazards and make recommendations
Assistance with implementing recommendations
Education and training
Resources to assist in loss prevention and control
Assistance with state specific programs.

So what can you do as an agent to help your client develop a solid loss control program? Follow these five simple steps so your restaurant clients know you're dedicated to them.

Speak their language. Restaurants face unique challenges and obstacles not seen in other industries. Show familiarity with the issues they are facing and offer solutions that make sense to them. An awareness of these challenges will position you for a more skilled, consultative conversation–beyond mere rates and quotes. This is an opportunity to showcase your competence, your confidence and your commitment to them and their industry.
Ask the right questions. This includes getting an accurate picture of the risk, their property, their business focus, hazards and liabilities, as well as their current operation and plans for the future. It also includes asking probing questions about their wants, needs and priorities. This approach will help you uncover what coverage is critical and what is merely desirable. This competitive landscape is not the place for “one-size-fits-all” solutions. Insureds want to know that you (a) understand their business, (b) can customize a cost-effective solution for their unique needs and (c) have the capability to handle their account with expertise.
Listen to their stories. An experienced agent in this industry will feel like they've heard and seen it all. And perhaps that's true. Stating that to your clients, however, will not impress them nearly as much as your willingness to make them feel as though their story is the only one that matters. As importantly, your ability to understand and relay your clients' stories to the carrier is essential. This includes knowing their highest priority needs, strengths and weaknesses.
Educate your clients. Insurance is a changing, complex landscape. Navigating through the loss control process can be both confusing and daunting for the insured. If you follow the steps above and listen to the insureds' pain points, you'll be better able to suggest initiatives to help them prevent losses.
Build great relationships with your carrier and leverage their strengths. Align yourself with carriers who want to partner with agents and insureds. The goal is a holistic approach where all parties view the whole of the business and collectively offer tangible value. If you know the risks your clients face, you can communicate those to the carrier, specifically its loss control department, to help you determine a plan of action that will be beneficial for all parties involved.

Read related: “Dishing Up Cyber Risk.”

Special Reports /

5 Ways to Build Trust with Restaurant Clients

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