Busy restaurant juggles multiple risks as well as orders
One of our clients is a local restaurant. They owned all the assets they used to generate their business revenue. Plus, their thriving trade was highly dependent on its location and the support from a largely local and loyal clientele. If they had to relocate, they guessed they would lose many of their regulars. They really valued their staff as an important part of their business, and wanted to keep them and protect them from income loss, if for some reason they couldn’t open for a period of time. They were also very vulnerable to increases in their operating expenses. They didn’t think they could remain competitive if they increased prices to offset any increases. They’d have to take a reduction on profit margins. The owner managers also worked day to day in the business, so in the event of a loss, they couldn’t just stop and drop everything to sort things out.
A comprehensive insurance package
After working through our 6-step Advice Process we identified a range of risk cover for them. Here’s what we recommended. Gross profit insurance, to be reviewed annually to allow for their projected growth. Sufficient coverage levels so that employees could be retained in the event of a reduction in turnover after a physical loss like building or premises damage. Insurance cover for an increase in operating expenses, enabling them to retain their clients while they addressed their profitability. Claims preparation cover, so that if something happened, a specialist could be engaged to prepare any claims and free up management’s time to continue to work in the business. We also arranged broad policy coverage that included prevention of access, even if there was no physical damage at the client’s premises.
Earthquake leaves them shaken but not stirred
What happened won’t be surprising to many of us in Christchurch or Wellington. A strong earthquake struck, but this client was well covered for that kind of event. Our strong relationships with industry specialists helped our client get prompt and sometimes preferential service at a busy time, with the earthquake affecting many businesses in the wider local area. Any damaged assets owned by the business were quickly replaced. The reduction/loss in profit they experienced while they waited to get access to their premises was also covered. During the interruption, their insurance covered the costs of paying and retaining their employees, meaning they were back up and running as soon as they were able. And any additional short-term operating costs didn’t leave them out of pocket. A professional claims preparation specialist was engaged at no cost to them, and aside from making things much simpler and less stressful, their expert negotiation skills resulted in the insurer adopting a wider interpretation of the policy wording and paying out substantially more than they originally offered.
From our clients
“I’ve used various companies over my many years in business, but never had insurance brokers with such a depth of knowledge of policy wording and outcomes. I wouldn’t use anyone else now.”Steven Scheckter Operations Manager, On Tray’s Limited