Franchised sandwich bar insurance
Having spent yesterday wandering around a shopping centre, at times aimlessly, I was struck by the number of food establishments. We are, as a nation, eating healthier in the UK. This is why out of the 25 or so food places, less than five were what I would call unhealthy fast food. The others offered much healthier (to me) sandwiches and the like.
All of these companies will have some form of business insurance requirement, usually with liability limits set by the shopping centre owners. We are approached on a fairly regular basis to provide quotes against many of the franchised businesses scheme insurance arrangements. What normally happens is that the franchise owner works with a broker to design a scheme that is competitively priced and offers wider cover. As the scheme grows, the premiums go up, not by much, year after year as all the businesses covered under the scheme pay similar premiums. But, when one, two or more businesses suffer large claims, the pricing on the whole scheme can go up.
This has happened to one of the larger companies that offered sandwich shop insurance through one broker, with one insurer. We were asked to quote for one of the franchise holders on a regional basis. They owned 7 shops and their overall insurance bill was averaging out at £800 per shop. We approached another insurer, on an individual basis for all the shops and got the price down to £600.
The only reason we could do this is that we are independent and could choose what we wanted to do and where we wanted to go. We saved them nearly £1,500 and they also had better excesses. This is where you should not always assume that because you are being offered a bespoke scheme, that you are getting a combination of the best price and best cover. You should always look around to see what alternatives are available on the other side of the fence.
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