Reputation is difficult to build but easy to destroy. Critical to ongoing success are very high standards of health & safety, product quality through rigorous quality checks and supply chain continuity coupled with a strong media and brand presence. Key risks include
Reputational damage through poor service, social media comment and public liability incident
Major loss on site at critical busy period of the year including cyber crime incident
Infectious disease outbreak
We have significant experience in this sector. There is no point spending money on insurance if it isn’t going to pay out when you most need it. If a loss occurs the financial impact can be devastating, that’s why speed of claims settlement and loss recovery support are absolutely critical.
Our service is geared towards protecting business reputation, balance sheet and cash flow. We do this by implementing a deep assessment of your working practices, health & safety systems , maintenance programmes, staff training and understanding critical danger risk aspects. In addition, we pay strong attention to cyber risk exposure and vulnerabilities.
We really get in deep to understand every potential risk. This is our job. We question everything, we challenge long held ways and beliefs and we help you identify and understand where it can all go horribly wrong.
Reputational confidence is vital. It is extremely important that you have strong Business Continuity procedures in place to react quickly to a problem situation. This could be backed up with Product Recall insurance and supporting Crisis Management insurance can be extremely effective in protecting your business.
Claims made by guests must be handled with speed and empathy. The guest isn’t always correct or fair in their assumptions in making a claim against you but they are aggrieved at an incident. Ensure your broker knows how to take the pressure off you and make the guest feel understood and treated with respect. This will reduce bad feeling and reputational impact
Insurers often provide infectious disease cover. However, not all insurers provide adequate policy wordings to meet all the risks you which your business is vulnerable.
Paul Milsom, Managing Director – Milsom Hotels & Restaurants
A long established and very popular hotel chain.
We were originally called in to carry out a competitive tendering exercise with a view to the business reducing its insurance costs.
It was clear to us that the company balance sheet was in a difficult position and therefore a major uninsured loss would have a devastating impact on the ability of the business to continue trading.
Hotel chains face significant and complex risk exposures. a failing in any can cause serious reputational damage.
We recommended a two stage exercise.
First, a confidential conceptual review. This would be tasked with assessing the current business risks and the suitability or not of the existing risk protection programme and reporting back to the hotel board
Second, an insurance market exercise with a view to initiating a competitive tendering amongst selected insurance companies
The outcome of stage one was uncomfortable. It seemed that the hotel chains existing broker simply hadn’t paid enough attention to the company’s growth over the previous few years, didn’t fully understand all the trading activities nor see that under insurance through inadequate sums insured was a real danger.
The technical strength of the policy wordings was weak and left the business exposed in the event of loss.
In addition, the claims process was cumbersome and caused friction between the hotel chain and claimants. The hotel was also left to deal with all claims it received below the £1000 policy excess.
Our insurer profitability analysis also demonstrated excessive profit making by the insurer and the broker.
It was clear what was needed. Before entering the insurance markets we had to restructure the insurance programme, dramatically reduce the warranties and remove gaps in the policy wording. Additional policy cover needed to be built including around business interruption extension such as infectious disease and public utilities area.
We then approached the insurance markets, invited some underwriters to visit the hotel sites and meet the management. This gave confidence to the underwriters and created genuine pricing competition that resulted in significantly improved cover and decent reduction in annual costs.
Our current client count within this industry