RAinbow BlOG

Summary

Tony Cañas from the Profiles in Risk podcast chats with Bobby Touran, Co-Founder at Rainbow. Rainbow is a modern underwriting company focused on small businesses. They focus on underwriting by being very specialized, currently in the food and beverage industry, primarily restaurants.

About Bobby

Bobby Touran is changing the business of restaurant insurance with UseRainbow.com, where he and his team are building custom insurance products for the restaurant industry and proudly using independent agents for distribution.

About the Profiles in Risk Podcast

Insurance Nerds’ Profiles in Risk podcast aims to bring an informative, fun and sometimes irreverent look at the insurance industry. Profiles in Risk is the only recurring podcast dedicated to Insurance Careers, InsurTech Startups and Analysis of Insurance Current Events.

Summary

Listen to this podcast from Insurance Nerds featuring Rainbow CEO, Bobby Touran. Bobby is a serial Entrepreneur, he and Broker Brett from Insurance Nerds get into the restaurant industry, their shared experience in the space, new innovative risk management ideas specific to the restaurant industry, and the startup environment in Summer 2023.

About Bobby

Bobby Touran is changing the business of restaurant insurance with UseRainbow.com, where he and his team are building custom insurance products for the restaurant industry and proudly using independent agents for distribution.

About Insurance Nerds

Insurance Nerds' co-founders, Carly Burnham and Tony Cañas, worked at Nationwide Insurance where they met while helping to build a new chapter of the Gen Y Associate Resource Group (young professional group) in the Des Moines, Iowa office. They used the Gen Y ARG and Yammer, Nationwide’s in-house social network, to help young insurance professionals grow in their career and to write about the future of the industry. When they both moved on to other companies, they missed the work of helping fellow insurance professionals grow and decided to continue it at an industry wide scale, and thus, in late 2014, InsNerds was born.

We started Rainbow with a mission to improve small commercial insurance, and by extension improve the operations of local entrepreneurs. We set out to develop customer-centric insurance that rewards operators for putting safety first, with pricing that automatically evolves with a business’s natural ups and downs. Our first offering is an admitted business owner’s policy (BOP) tailored specifically for the restaurant industry. 

Overall, our approach builds on 4 key pillars:

• Focusing on preventing and avoiding claims, because claims aren’t good for anyone.
• Modernizing insurance by redeveloping the core parts of an insurance transaction, and improving affordability for insureds (business owners) through tailored coverages.
• Empowering small businesses with the resources and guidance to run a safer business, and rewarding them for taking steps to improve their safety.
• Being the easiest and most pleasant market for the agents we work with.

We strive to offer the best end-to-end experience in the industry for small commercial insurance, and our software engineering goes well beyond quote, bind and issue capabilities.

We are Rainbow! 

Shalom, Jamie, Bobby

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The first Pay-As-You-Go BOP

Introducing the industry’s first Business Owner’s Policy (BOP) with an annual term billed on a Pay-As-You-Go monthly basis that requires no upfront premium deposit. By connecting your point-of-sale or accounting system to Rainbow, you ensure your general liability insurance premiums are automatically and appropriately priced, based on your monthly sales levels. 

We provide protection with industry-tailored coverage and lower monthly premiums during periods of seasonality or general business slow downs. During periods of growth, you can be confident you’re paying the exact policy premium required for the coverage you need. Even better, we reduce the need for time consuming year end audits.

How do we price your insurance premiums every month?

With Pay-As-You-Go policies, the premium charged for certain general liability coverages will change each month, as your total sales fluctuates. Premiums charged for property coverages (like business personal property and building) remain fixed throughout the policy term.  As such, any change in the total monthly premium is directly attributable to changes in premium for general liability coverage. 

To support a Pay-As-You-Go policy, we require verifiable sales reporting from the policyholder on a monthly basis.  There are three ways to send us your sales data:

• a direct (API) integration with your Point-of-Sale (POS) or cloud accounting provider (coming soon!)
• automated email reporting from your Point-of-Sale (POS) or cloud accounting provider
• self-reporting by the establishment

Reporting sales: Direct API integration (coming soon) 

Reporting sales this way is by far the easiest.  If you use a POS or accounting provider that Rainbow has an integration with already, just follow the steps below:

• Login to your Rainbow dashboard
• Click Integrations on the left nav bar
• Select your POS/accounting provider if it is listed
• Login to your provider following the steps on screen

And voila! You’ve now connected your POS/accounting service to Rainbow, and your Pay-As-You-Go BOP policy is fully set up.

Reporting sales: Automated email reporting

You may be able to send automated email reporting to Rainbow directly from your provider.  For example, automated daily sales email reporting is available through:

• Toast (Instructions to set this up here)
• FocusPOS (Instructions to set this up here)
• QuickBooks (Instructions to set this up here)

If you know that your POS/accounting provider supports automated email reports, get started by emailing us at support@userainbow.com requesting a unique Pay-As-You-Go email address and we will be glad to help you out.

Once you set up automated daily or monthly emails to come to Rainbow, you’re all set! Nothing else is required.

Reporting sales: Self-reporting

If you are unable to report sales to Rainbow through automated emails, you’re still eligible for a Pay-As-You-Go policy!  To keep the policy in good standing, you must provide Rainbow with a verifiable sales report every reporting period. We accept the following verifiable sales reports:

• PDF sales reports exported directly from your POS/accounting provider
• P&L or general ledger reports exported directly from your accounting provider
• Sales reports in email format that originated from your POS/accounting provider

Unfortunately we cannot accept: 

• Screenshots or pictures of sales reports
• User-reported sales either via email or over the phone

Before generating your sales report to send to Rainbow, you must use a date range that matches your policy’s monthly payment period.  This is generally always the 30 day period after your last premium bill receipt.

Again, get started by emailing us at support@userainbow.com noting that you’re requesting a unique Pay-As-You-Go email address and verification of the correct reporting window and we will be happy to confirm this for you! 

Are you an insurance agent? Get appointed now.

If you’re an agent and want to learn more about Rainbow Insurance and get appointed, click here.

As an appointed agent, you benefit from a flexible, easy-to-navigate digital platform that is backed by live underwriters and can quote and bind a policy online in 5 minutes or less. You can eliminate the tedium of online quoting with a streamlined submission process and instant issuance of policies and COIs. Plus, Rainbow offers competitive profit share plans, starting as low as $100k in gross written premium, for appointed agents that consistently write new lines of business using the platform.

A typical BOP policy is based on estimates

Traditionally, a small business or restaurant looking for business insurance would work with their agent to purchase a commercial multi-peril, or Business Owner’s Policy (BOP), based on estimated information.  

Generally, what key information is estimated? For restaurants or foodservice establishments, it’s:

• total annual sales or annual receipts,
• total liquor or alcohol sales as a percent of annual sales; and,
• total sales from delivery as a percent of annual sales.

This information is required during quoting as it plays a large part in determining the ultimate general liability component of the total premium the business pays.  Because the information is estimated, it is always subject to audit by the insurance carrier.  Premium audits:

• are inconvenient for the agent and business owner,
• can lead to the business paying more for their insurance at the end of the policy term; and,
• can lead to challenges with coverage renewals if the estimated information is deemed untruthful.

In an ever-evolving business environment, especially felt by restaurants coming out of the global pandemic, estimating 12 months’ worth of sales can be challenging.  We think it should be unnecessary.

The first Pay-As-You-Go BOP

Rainbow has introduced the first Business Owner’s Policy (BOP) to the market that is billed on a Pay-As-You-Go monthly basis. We achieve this by simply allowing a business to connect their POS or accounting system to Rainbow, so their general liability insurance premiums can be automatically priced, based on their monthly sales levels. We offer: 

• No upfront premium payments - you start paying your policy premiums at the end of the first month,
• No audits or back premiums; and,
• Peace of mind that the business only pays for the insurance that they need, and is covered for the full policy term, based on verified (not estimated) information. 

Pay for only the insurance you need

With a Rainbow Pay-As-You-Go BOP, the business has peace of mind that during economic downturns or periods of seasonality, their policy premium will decrease with lower sales levels.  Likewise, during periods of growth in total sales, the business can be confident that they are paying the exact policy premium required for the coverage they need.

Get a Rainbow Pay-As-You-Go BOP

If you are a small business owner in Texas or Arizona, talk to your insurance agent today about seeing a BOP quote from Rainbow Insurance, or simply click here.

Agents, get appointed now.

If you’re an agent and want to learn more about Rainbow Insurance and get appointed, click here.

As an appointed agent, you benefit from a flexible, easy-to-navigate digital platform that is backed by live underwriters and can quote and bind a policy online in 5 minutes or less. You can eliminate the tedium of online quoting with a streamlined submission process and instant issuance of policies and COIs. Plus, Rainbow offers competitive profit share plans, starting as low as $100k in gross written premium, for appointed agents that consistently write new lines of business using the platform.

Understand the key challenges and explore opportunities within the restaurant industry while learning strategies that maximize sales as a restaurant insurance agent.

Restaurant insurance is a highly competitive market that faces several challenges and opportunities in 2023. To maximize sales, restaurant insurance agents must think outside the box and implement strategies that build strong relationships with clients, stay up-to-date on industry trends and regulations, and leverage technology to streamline sales.

Here are some strategies for maximizing sales in the restaurant insurance market in 2023:

Strengthen client relationships

Building strong, long-term relationships with each client is essential to establish a deep understanding of a client's unique needs and provide tailored insurance solutions. By building long-term relationships, agents can generate repeat business and referrals from satisfied clients. Prioritize after-sales support and engage in regular communication to build a rapport that will ensure you get the call come renewal time.

Ask happy clients for referrals

Encouraging existing clients to refer their vendors and business partners can help drive new business. The restaurant industry can be a close-knit community with overlapping vendors and service providers that interact with many businesses. Strong client relationships and simply asking for the referral will offer fruitful leads toward new business

Stay up-to-date on trends & regulations

Keeping abreast of new trends through sites like RestaurantNews.com, regulations, and developments in the restaurant industry can help agents stay ahead of the curve and provide the most relevant and effective insurance products to their clients. This also ties back into strong client relations as it offers a foundation for dialogue and conversation.

Leverage tech to streamline sales

Technology can ramp up your sales in a big way. Consider using online tools that simplify the sales process, such as HubSpot and Rainbow Insurance. This can help reduce the time and effort required to bind policies and communicate with prospects, making it easier to convert leads into customers. Rainbow offers a suite of tech tools that are beneficial to both agents and their customers by simplifying the insurance buying process and reducing costs. Agents can automate tedious tasks and get quotes online in minutes. Customers, on the other hand, can link Rainbow with their existing POS system to take advantage of variable rate premiums that adjust to the restaurant’s volume of sales each month.

Develop strategic partnerships

Partner with POS providers, delivery services, or associations like the National Restaurant Association. Partnering with companies that serve the restaurant industry can be a great way to expand your reach and tap into new markets. The goal here is to create opportunities to connect with potential customers and build relationships without tired outreach methods like cold calling or spamming.

Don't be a generalist

To stand out in a crowded market, it's important to differentiate your product offerings. Rather than offering generic insurance policies and one-size fits all coverage, narrow your focus around the restaurant space. Learn about the challenges inherent to the restaurant industry and learn how to address the needs of clientele operating in that market segment. This will help you establish expertise within the market and attract customers who are looking for specialized coverage and guidance.

Target specific niches

Zero in on niches such as Texas barbecue franchises. In addition to specializing in specific coverages for niches, it can be beneficial to focus on market segments within the restaurant industry. For example, coffee shops, fast food, or fine dining establishments all have unique insurance needs, so you can tailor your products and services.

Get appointed with Rainbow Insurance

Another way to differentiate your offerings is to provide unique value-added services. Rainbow is a game changer in the restaurant insurance market because it is 100% built for restaurants and adjusts to their business with a pay as they grow model of coverage. Restaurant owners benefit because they will never overpay premiums, and they will never find themselves underinsured.

As an appointed agent, you benefit from a flexible, easy-to-navigate digital platform that is backed by live underwriters and can quote and bind a policy online in 5 minutes or less. You can eliminate the tedium of online quoting with a streamlined submission process and instant issuance of policies and COIs. Plus, Rainbow offers competitive profit share plans, starting as low as $100k in gross written premium, for appointed agents that consistently write new lines of business using the platform.

To learn more about Rainbow Insurance and get appointed visit userainbow.com/for-agents

Learn how to choose the insurance coverages that will protect your kitchen, employees, and customers while mitigating risk.

Running a restaurant can be a rewarding and lucrative endeavor, but it also comes with significant risk. From accidents in the kitchen to customer injuries, there are many liabilities that restaurant owners need to consider. The proper insurance coverage can provide protection against the financial aspects of damaged property, food contamination, bodily injury liability and other hazards.

Understand the legal and contractual requirements.

Depending on the state and local laws, you may be required to carry certain types of coverage, such as workers compensation or liability insurance. Some municipalities or landlords may also require restaurant owners to carry a specific dollar amount of coverage, so make sure you're familiar with the requirements that might apply to you.

Conduct a thorough risk assessment & mitigate risks.

Identify potential liabilities in your restaurant and consider the following when choosing an insurance policy:

• Kitchen hazards: Hot surfaces, sharp knives, and boiling liquids are just a few of the hazards that can lead to accidents in the kitchen.
• Customer injuries: Slips, falls, and food poisoning are a few examples of injuries that customers may sustain in your restaurant.
• Property damage: Whether it's damage caused by a fire, natural disaster, or other events, property damage can be costly for restaurant owners.

Once you've identified potential risks, take steps to mitigate them. For example, implement safety protocols in your kitchen, train your employees on food handling procedures, and make sure your restaurant meets or exceeds local health and safety regulations. This can save you money by opening up premium discounts while preventing costly claims.

Select insurance coverage tailored to your needs.

Here are a few forms of insurance coverage common to the restaurant industry:

• Business Owners Policy (BOP): A BOP combines liability and property insurance coverages into one convenient policy. This is a great option for restaurateurs that own or rent a physical location visited by patrons. 
• General Liability Insurance: This coverage protects your restaurant’s legal responsibility for claims related to injuries or property damage that occur on your premises. Think classic slip-and-fall accidents.
• Property Insurance: This coverage can protect your restaurant’s buildings, as well as the property within those buildings, from damage caused by fires, natural disasters, theft, vandalism, or other events.
• Liquor Liability Insurance: This coverage protects businesses that manufacture, sell or serve alcohol in the case that an intoxicated patron causes injuries or property damage after drinking at their establishment. It can help cover legal fees, settlements, and other costs associated with alcohol-related incidents.
• Employment Practices Liability Insurance (EPLI): This policy provides coverage for defense costs and damages related to various employment-related claims such as discrimination, harassment, wrongful termination, retaliation and other employment-related issues.
• Tenant’s Liability Insurance: This coverage protects restaurants that rent their property and covers the cost of damage that the business and their customers may cause to the facility.
• Cyber Liability Insurance: This insurance provides coverage for liability and expenses as a result of data breaches and other cybersecurity incidents.
• Business Interruption Insurance: If your restaurant is unable to operate due to a covered event, such as a fire or natural disaster, business interruption will replace lost income and additional expenses incurred during the downtime.
• Food Spoilage and Contamination Insurance: This coverage helps businesses recoup losses caused by spoilage or contamination of perishable goods due to power outages, mechanical breakdowns, or refrigeration failures.
• Equipment breakdown Insurance: This coverage provides protection for mechanical or electrical breakdown of equipment, including cooking equipment, refrigerators and air conditioning units.
• Utility Service Interruption: This coverage protects a business for loss due to interruption of utility services, such as electricity, gas or water.
• Workers Compensation Insurance: If an employee is injured on the job, work comp covers medical expenses, rehabilitation costs and lost wages. It can also protect restaurants from lawsuits related to employee injuries.

Consult with a professional.

Identifying the correct type and amount of insurance coverage can be complex, so always consult with a professional agent. Rainbow agents can help you identify potential risks, analyze your obligations, and provide competitive coverage options for your restaurant.

Keep your policy up to date.

As your restaurant grows and operations evolve, your insurance needs may change. For example, if you add new equipment or expand your restaurant, you may need to update your policy to ensure you have adequate coverage. Make sure to review your policy regularly and consult your agent to make any necessary updates to protect your restaurant, equipment, and employees.

At Rainbow, we specialize in providing comprehensive insurance solutions for restaurants and other food service businesses. Contact a Rainbow agent today to get a quote, and learn more about how we can provide the right coverage to meet your specific needs and budget. Visit userainbow.com/for-restaurants today.

Explore how restaurants are adapting in the digital age, how it affects the restaurant insurance market, and how to navigate the shift and capitalize on new opportunities.

The rise of digital technology has had a profound impact on the restaurant industry, transforming the way restaurants operate and interact with customers. A wave of new tools has arrived that enable restaurants to increase convenience and personalization for their customers while improving operational efficiency. However, this digital transformation has also introduced a new set of risks. As a result, the restaurant insurance market has evolved to address these challenges, offering new coverage options to protect against cyber threats and other risks inherent to doing business in the digital age.

Here are some ways that digital technology is changing the industry and how restaurant owners are adapting:

The rise of technology in the restaurant industry.

With online ordering, mobile payments, cloud-based POS systems, and customer engagement tools, restaurants have experienced many shifts. A tech-forward operation means restaurants can now collect and analyze data on customer behavior, preferences, and sales. This allows for better decision-making and can assist with more targeted marketing efforts.

Cloud POS systems streamline operations.

Cloud-based POS systems like Toast, TouchBistro, and Square have transformed the restaurant industry by streamlining operations, improving accuracy, enhancing the customer experience, and optimizing inventory management. These systems enable servers to take orders and process payments at the table.

Changes in coverage options and premiums.

As restaurants adopt new technologies, they become more vulnerable to cyber threats, data breaches, and other technology-related risks. This has led insurance companies to develop new tech-specific coverage options to help restaurants manage these risks. However, these new coverages can lead to increased premiums, as insurers seek to mitigate the higher risks associated with technology use.

The impact on liability and risk management.

The impact of technology on liability and risk management in the restaurant industry has been significant. Food safety monitoring systems, contactless payment and ordering, employee training, data analytics, and digital record-keeping have all enabled restaurants to mitigate risks and liabilities in new ways. Using real-time information and automating certain processes, restaurants are now able to identify and address potential issues before they become liabilities, and respond quickly when issues do arise.

Navigating the shift toward technology. 

An insurance agent can be a valuable partner in helping restaurant owners navigate the industry shift. An agent can assess the potential risks and suggest coverage options that protect against data breaches, cyberattacks, and network failures. Additionally, agents can help restaurant owners understand their legal obligations and compliance requirements in areas that may be unfamiliar, such as data privacy and security regulations.

Tailoring insurance coverage to the new market.

Insurance agents play a key role in the restaurant industry’s continued adoption of technology. As such, it is an agent’s responsibility to identify and adjust coverage options and tailor insurance offerings by understanding the unique risks and challenges facing these businesses. Agents should work with restaurant owners to assess their technology infrastructure to identify potential liabilities. With this information, agents can help design policies that cover these risks and ensure that restaurant owners have the coverage needed to protect their businesses and assets.

Understanding coverage options that protect against cyber threats.

Like most businesses, restaurants are vulnerable to cyber threats such as data breaches, network downtime, and fraud. Insurance agents can help restaurant owners understand coverage options that protect against cyber threats by first identifying their unique risks and vulnerabilities to such threats. A knowledgeable agent can then educate restaurant owners on the types of coverage available, such as cyber liability insurance, and explain the benefits and limitations of each option. Agents can also help determine the appropriate coverage levels and customize policies to fit their specific needs.

Choose a product like Rainbow.

Rainbow helps restaurant owners effectively navigate the evolving landscape of the industry and make informed decisions about insurance coverage, and it is 100% built for restaurants. 

Rainbow agents offer clients policies that adjust to their business with Pay As You Grow coverage, ensuring restaurant owners never overpay on premiums. Restaurant owners working closely with a Rainbow-appointed insurance agent can evolve their operations to address the new set of risks present in the space and navigate the shift to digital technology. Get started with Rainbow today.