#Knoxville #United States #CIC Services #Captive Insurance #Ragnar Group

Innovative Insurance Solutions for Restaurants and Bars

In a significant move for the hospitality industry, CIC Services, LLC has partnered with the Ragnar Group, Inc. to launch a group captive insurance program tailored specifically for restaurants and bars. Set to become available by the end of September 2025, this groundbreaking initiative addresses a prevalent issue faced by many establishments in the sector: misclassification by traditional insurance companies, which often leads to inflated premium rates.

Understanding the Problem

Traditionally, insurance companies categorize restaurants into broad categories, such as “sports bar” or “fine dining,” neglecting the unique characteristics that define their risk profiles. This blanket approach results in higher premiums, forcing restaurateurs to pay for coverage that does not accurately reflect their business operations. For instance, a quiet neighborhood pub might find itself paying the same rates as a high-traffic nightclub, which is not only unfair but also financially burdensome.

The Solution: Community Underwriting

The new captive program from CIC Services and the Ragnar Group leverages a novel concept known as community underwriting. This method seeks to refine the underwriting process by incorporating feedback from existing policyholders into the assessment of new applicants. Instead of applying generic risk factors, the guidelines consider multiple variables such as:

• - Hours of Operation: Recognizing that risk fluctuates based on operational timelines.
• - Types of Alcohol Served: Differentiating risk based on the alcohol menu offered.
• - Entertainment Options: Whether a venue hosts live music or other performance arts, which can influence risk.
• - Management Practices: How establishments are run also affects their risk profiles.

By evaluating these parameters, the captive aims to align members sharing similar risk characteristics, creating a fairer and more manageable insurance landscape for restaurateurs.

Industry Perspectives

Andrew R. Reina, CEO of the Ragnar Group, expressed his enthusiasm for the initiative, stating, "The vast majority of restaurants and bars are fundamentally misidentified when it comes to risk. By introducing more precise guidelines and what we call 'community underwriting,' we believe this captive offers a fairer, more transparent solution to owners who have grown frustrated with traditional insurance models."

This sentiment echoes the views of CIC Services Principal Shawn Holland, who acknowledged the meticulous research behind this innovative approach. “Andrew came to us with a unique solution to solve a common problem in the restaurant and bar insurance marketplace. His approach is extremely well-researched, and his underwriting guidelines are meticulous,” Holland stated.

Tailored Access and Exclusions

The initiative welcomes a broad spectrum of establishments, including bars, pubs, nightclubs, and fine dining restaurants, to apply. However, some types of venues, like gentlemen's clubs and high-risk businesses such as cash-only operations and venues with mechanical riding devices, are notably excluded from participation in this program. This focused approach ensures that the insurance offered is both relevant and responsible.

Drawing Interest Across the Sector

The launch of this program has already garnered considerable attention within the hospitality sector, suggesting a robust interest in insurance solutions that better match the actual risk faced by businesses. As this captive program prepares for its release, eager restaurateurs can look forward to a more transparent and equitable insurance experience.

For more information or to apply, interested parties can reach out directly to Andrew Reina or Travis Brewster via their provided emails, or visit www.scliquorliability.com for further details.

About CIC Services and the Ragnar Group

CIC Services has been at the forefront of captive insurance management since 2005, assisting small and mid-sized businesses to better manage risk while controlling costs and creating new profit centers through ownership of their own insurance companies. On the other hand, the Ragnar Group Inc. prides itself on being an innovative player in the insurance and financial services landscape, focusing on delivering competitive pricing and personalized service without relying on automated systems.

As the restaurant and bar industry continues to adapt to the evolving economic landscape, this new captive insurance program stands to empower business owners to take control of their insurance destiny. With fairer premiums and tailored coverage, the future looks promising for culinary entrepreneurs everywhere.