Case study: Franchise insurance coverage review and optimization

Overview

A hospitality group operating seven franchised fast food locations in the food and beverage sector sought to better understand their current insurance coverage. Being in a fast-paced industry, the group recognized that even small oversights in insurance strategy could carry significant operational and financial consequences.

Through MNP’s Insurance Advisory services within the Forensics practice, the client gained clarity on their risk exposure and actionable insights to enhance the effectiveness of their insurance strategy.

The challenge

The client was referred internally with concerns about whether their current insurance policies adequately protected their operations. They were particularly interested in identifying any unnecessary coverage or potential gaps that could expose them to risk.

The solution

Our team conducted a detailed review of the insurance policies across all seven locations. We flagged areas for follow-up and provided a clear, actionable report. Key findings included:

• Opportunities to reduce premiums by increasing deductibles, which were previously set quite low.
• A potentially insufficient aggregate limit for business interruption coverage, especially if a single event impacted multiple locations.
• Low professional fee coverage in the event of a loss.
• Missing elements in their cyber insurance policy.
• A termination clause that allows the insurer to cancel coverage with just 30 days notice.

The results

The client walked away with a clear understanding of their insurance landscape and a practical roadmap to strengthen their coverage while managing costs. The engagement delivered more than just a report — it provided peace of mind, empowered decision-making, and reinforced the client’s confidence in their risk management strategy.

Explore the following considerations to uncover similar opportunities:

• When is your next insurance renewal?
• Are you confident your coverage is aligned with your operational risks?
• Could you benefit from a second opinion from our insurance professionals?