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

With more than 550,000 restaurant establishments in NorthAmerica with a combined annual revenue exceeding $400 billion, therestaurant industry is second to none in size, according to theNational Restaurant Association. The association also states thatthe employee base is projected to reach 14 million employees by theend of 2012, making this private industry the nation's largestemployer outside of government.

A market of this size and scope is a goldmine for the insuranceindustry; smart brokers, agents and carriers are all vying for apiece of the action. But with all that competition, those who willwin are those who position themselves as experts and can bringvalue to the table.

Read related: “4 Trending Risks for Recession-RecoveringRestaurants.”

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

The best news about this valuable relationship builder is thatmost loss control services are offered for free. Your insurancecarrier 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 asolid loss control program? Follow these five simple steps so yourrestaurant clients know you're dedicated to them.

1. Speak their language. Restaurants face uniquechallenges and obstacles not seen in other industries. Showfamiliarity with the issues they are facing and offer solutionsthat make sense to them. An awareness of these challenges willposition you for a more skilled, consultative conversation–beyondmere rates and quotes. This is an opportunity to showcase yourcompetence, your confidence and your commitment to them and theirindustry.
2. Ask the right questions. This includes gettingan accurate picture of the risk, their property, their businessfocus, hazards and liabilities, as well as their current operationand plans for the future. It also includes asking probing questionsabout their wants, needs and priorities. This approach will helpyou 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 theirbusiness, (b) can customize a cost-effective solution for theirunique needs and (c) have the capability to handle their accountwith expertise.
3. Listen to their stories. An experiencedagent in this industry will feel like they've heard and seen itall. And perhaps that's true. Stating that to your clients,however, will not impress them nearly as much as your willingnessto make them feel as though their story is the only onethat matters. As importantly, your ability to understand and relayyour clients' stories to the carrier is essential. This includesknowing their highest priority needs, strengths andweaknesses.
4. Educate your clients. Insurance is a changing,complex landscape. Navigating through the loss control process canbe both confusing and daunting for the insured. If you follow thesteps above and listen to the insureds' pain points, you'll bebetter able to suggest initiatives to help them preventlosses.
5. Build great relationships with your carrier andleverage their strengths. Align yourself with carriers whowant to partner with agents and insureds. The goal is a holisticapproach where all parties view the whole of the business andcollectively offer tangible value. If you know the risks yourclients face, you can communicate those to the carrier,specifically its loss control department, to help you determine aplan of action that will be beneficial for all partiesinvolved.

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