Exclusions: Active Assailant Coverage – Oh My!
This market has opened the door for new business opportunities for specialists in hospitality. As restaurant owners search for ways to save money they are more willing to “shop” their insurance.
“It helps to get your foot in the door,” John Parkhurst, Hospitality Practice Leader, Trucordia, said. Start by offering to take a look at their insurance portfolio especially when you know a carrier increased rates 15%, he said. “It wouldn’t hurt to take a look,” he said. “I’ve actually been able to offset some of those increases by just quoting their work comp — getting the work comp down can offset an increase on the BOP side.”
Another way he gets in the door as a specialist is by understanding their business and their coverage and possible gaps. Parkhurst says he often advises prospects on their current coverages and has found that many may not fully understand their policies.
Another area he reviews closely is policy exclusions. “You’re starting to see carriers doing firearms exclusions on their policies and unfortunately that kind of risk can happen anywhere,” he said. He suggests a standalone active assailant policy to those who are missing this critical coverage.
Another coverage gap he has found when reviewing a prospect’s portfolio is exclusions for assault and battery coverage. “I just picked up a couple of nightclubs in Nashville that had no idea that they had assault and battery exclusions on their policy,” he said. “I said, ‘Hey, just so you’re aware, you’re on a general liability policy. You’re insured for a slip and fall and that’s about it. Anybody gets into a fight, you have no coverage.’ And they didn’t understand that coverage was missing,” he said.
Educating clients and prospects on their coverage options brings in new business, he says, even in today’s hard market.
“I think the clients that I deal with appreciate the explanation of all the coverage,” he said. It’s also just good due diligence and best practice to make sure clients are fully covered, he added. “My philosophy has always been to sell coverage first, price second. If somebody doesn’t want an assault and battery just to save a few dollars, I’ll typically walk away from a risk like that.”
Parkhurst says most restaurants today are fighting to keep a very thin profit margin since the pandemic. If their insurance partner can help them reduce their risk and save a bit of money, they will be rewarded with a great client.
