“ his year has been unprecedented in so many ways ,” said Jeff Fox at USI Insurance Services . Our collective world of risk management was directly impacted to the extent that this year has kept franchisees and insurers guessing about what ’ s coming next . The first half of the year ushered in significant COVID-19 coverage and claim challenges , and the resulting economic downturn forced many businesses to close and furlough or lay off millions of workers . As employers began to take steps to reopen and adjust to a “ new normal ,” social unrest boiled over across the country , followed by a record-breaking hurricane season and another year of massive wildfires across the west .

Although the market has already significantly firmed this past year , continued uncertainty from COVID-19 related cases , higher than normal legal judgements , jury awards , catastrophic property losses , and additional factors have insurers raising rates , lowering capacity , limiting or transferring risk , and taking a harder look at risk profiles . For franchisees , maintaining a best-in-class risk profile is critical in maintaining a robust insurance program . Matt Hillberg , senior executive to the USI Planet Fitness ® program , went on to say , “ Our program continues to be built on a sound coverage foundation that meets or exceeds the insurance requirements for franchisees with the understanding that we as brokers must be mindful of costs in these challenging times .”

Fortunately , for Planet Fitness franchisees , USI Insurance has experienced relatively flat renewals across the board for franchisees with good loss history and

“ Our program continues

to be built on a sound

coverage foundation that

meets or exceeds the

insurance requirements

for franchisees with

the understanding that

we as brokers must be

mindful of costs in these

challenging times .”

10-15 % increases for franchisees with less than favorable experience . This is the case with the core property & casualty lines of coverage consisting of property , general liability , auto , workers ’ compensation and even umbrella . The areas of concern from a coverage restriction and rate increase perspective for franchisees are with the management liability lines of coverage ,

including the Private Directors & Officers Market ( up 10-60 %), Employment Practices Liability ( up 15-60 %) and Cyber Liability ( up 5-20 %). “ The management liability team at USI Insurance recommends starting the placement process early and engaging more insurers when marketing the renewal ,” said Tom Ciano of the management practice team at USI Boston .

As we approach 2021 , we will continue to monitor industry trends and market developments so we can guide and support franchisees through these uncertain times . Jeff Fox and Matt Hillberg of USI encourage franchisees to begin working with their insurance broker three months before the commercial insurance renewal . Giving underwriters ample amounts of time to review your operation will be beneficial in securing the most advantageous renewal program from both a coverage and premium perspective .

With over a decade of program stability and service to Planet Fitness franchisees , Jeff Fox and Matt Hillberg continue to provide a comprehensive insurance program satisfying and exceeding the franchise insurance requirements . Hillberg concluded , “ We will collectively get through this challenging time , and as market conditions continue to evolve so will our approach to delivering a comprehensive and competitive risk management program .” G

USI Insurance Services is a platinum sponsor partner of the PFIFC .

GearedUp | 2020 Issue 4

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