Quick-service restaurant (QSR) owners can expect higher insurance premiums in 2013, warns insureon’s CEO, Ted Devine.
His comments were noted by QSR Magazine, a leading industry publication, which ran a story today highlighting the reasons for the anticipated jump in insurance costs. According to Devine, a number of factors contribute to the higher costs, including…
- More frequent weather-related power outages: Hurricane Sandy was only one in a series of weather events in 2012 that led to flooding, property damage, and power outages that caused QSR owners to lose inventory, suffer damages to their property, and close their operations unexpectedly.
- Food contamination incidents: Food products from produce to meat saw contamination problems in 2012, and the trend is expected to continue in 2013. As the risk of spreading disease through food increases, insurers raise premiums to cope with the likely increase in claims.
- Rising reports of on-the-job injury: Last year saw an uptick in QSR employees reporting injuries, especially cooking-related and slip-and-fall incidents.
- High employee turnover: A volatile jobs market means that turnover in QSR remains high, which tends to be costly for owners and therefore insurers.
Together, these factors contributed to more claims than average in 2012, meaning that insurance providers were required to pay out on policies more often than they expected to.
Risk Management for QSR Owners in 2013
Devine notes that QSR owners can keep their business insurance costs to a minimum by taking proactive measures to improve the safety of their workplace. He also recommends that, to ensure that they are currently covered for any elevated risks they face this year, QSR owners should renew their insurance policies thoughtfully, asking their agent about new risks and industry changes that might affect their coverage before signing on to the same policy they had in previous years.