Pizza Delivery Franchisee

A large group of pizza delivery franchisees throughout the country formed a group Workers’ Compensation program. The program allowed all franchisees from the small to the very large to receive favorable insurance pricing from an "A"-rated carrier. While the sizable group plan created an attractive business opportunity for insurance carriers, the quality of the individual risks varied and losses on the whole were significant. The client knew that the only way they could retain a quality insurance partner was to demonstrate they had proactive risk management controls in place. The client’s risk management team looked to their McGriff partners to help them develop and implement an action plan.

To better understand the risk management picture, the risk solutions analytics team conducted a detailed loss analysis for the entire franchise group. The analysis revealed a high incidence of slip, trip and falls as well as motor vehicle accidents. Furthermore, there were many individual locations driving the cost of claims and the frequency of accidents.

The risk control team spent a significant amount of time at a few of these franchise locations to determine why loss drivers were occurring and what could be done to prevent similar losses in the future. The information learned from the onsite visits was used to develop a web-based franchise risk management assessment tool, which would evaluate the existing safety and claims management programs and develop individual action plans.

A team of risk control consultants then visited more than 100 key franchise locations to share a loss analysis, review risk management best practices, and develop a location-specific action plan. The web-based assessment tool was then used to track and monitor progress.

In the next 24 months, the client experienced a 53 percent reduction in the number of workers’ compensation claims and a 64 percent reduction in the cost of claims. The positive results revealed the impact of the visits and the franchisee management team’s understanding of best practices. Equally important, the underwriter for the insurance carrier recognized the client has a strategic risk management program in place. This has allowed them to continue to retain their partnership with the "A"-rated insurance carrier, affording them the ability to offer favorable workers' compensation rates for the entire group.

Disclaimer: Individual results will vary.