Is your restaurant insurance program worth its salt?

When it comes to restaurant associations, it all started with eggs. Eggs, you ask? The price of eggs, in fact.

When it comes to restaurant associations, it all started with eggs. Eggs, you ask? The price of eggs, in fact.

In 1917, egg brokers tried to demand 65 cents for a dozen eggs. Sounds great today, but in 1917 that was seen as outrageous. Fortunately, the industry's first association, the Kansas City Restaurant Association, had formed a year earlier. They were able to organize an egg boycott, which led to a price per dozen eggs of 32 cents. It also led to the development of the National Restaurant Association® we know today. (You can read the full and storied past of the NRA on their website.)

Today, there's a restaurant association in every state, as well as the national organization. These associations do a lot - lobby for legislation, provide educational resources, organize networking, and help with course and certification requirements such as ServSafe®.  If you're part of an association, I recommend this article from FoodSafety MagazineTM,  How to get the Most From Your Food Association Membership.

Associations may also provide another key benefit: partnerships with insurance companies.  You might ask, why would an association want to partner with an insurance company? There are so many reasons, and here are a few:

  1. Each restaurant holding a policy through the association may receive financial incentives such as premium discounts, risk mitigation devices and best-practice, cost-saving safety recommendations.
  2. You might get other special incentives from the insurance company to encourage restaurant owners to join the association and the insurance program.
  3. The insurance company can offer coverages specific to the members of the association. And, because the groups' performance can be tracked in aggregate, pricing for the restaurant classes can be very competitive.
  4. Agents selling to the restaurant owners have an advantage over competitors who do not have companies with partnerships with associations. And, the agent can also be an advocate to help the association acquire new members.

For these reasons (and really, even more, that I haven't mentioned here), there's a lot of value to be gained when you put an association and its members together with an insurance company and independent agents.  Another reason could be the similarities in our histories -- associations and insurance both have roots in a problem that people came together to solve. Our organizations have been based on relationships ever since.  

And, in State Auto's case, we have eggs in our history books, too. Our founder-led our company to hand out free eggs to people in need during the Great Depression.

State Auto Insurance makes no representations or guarantee as to the correctness or sufficiency of any information contained herein, nor guarantees results based upon use of this information. State Auto does not warrant that reliance upon this document will prevent accident and losses or satisfy federal, state and local codes, ordinances and regulations. The reader assumes entire risk as to use of this information.

Most of the restaurant owners I've worked with got into the business because of their passion for...