The Oakbridge Approach to Reducing Risk in a Dynamic Hospitality Market

Few industries have faced the kinds of challenges hospitality has over the past five years. For hospitality operators striving to provide excellent customer experiences and services for their guests, those challenges can directly translate into insurance premiums which negatively impact business goals.

Oakbridge has been tackling this conundrum head on through its own brand of client service — by identifying and implementing solutions with its insureds.

For Josh Cavallin, Oakbridge Principal and Hospitality lead, finding solutions in this “brutal business environment” requires a five-step approach: straightforward risk assessment, actionable and solutions-based risk mitigation programs, open channels of communication, deep carrier relationships, and the highest value coverage at the most reasonable price.

A Mix of Challenges Significantly Impacts Hospitality Coverage Costs
From the pandemic to supply chain disruption to inflation and labor shortages, the industry sits at the nexus of the economy’s shifting whims. Industry-specific issues such as aging properties, investor pressure on operators, unpredictable weather-related property damage and an increasingly litigious society have created what Cavallin calls “a brutal business environment.”

“To add to an already gloomy situation, carriers are leaving the market at a steady pace,” Cavallin says. “We’re seeing a shift to a ‘broker of record’ environment, which makes it much more competitive for independent agencies like Oakbridge. Everyone’s competing for the same markets.”

Actionable Risk Assessment
Cavallin explains that proactive risk assessment and management is the key Oakbridge advantage. His team goes the extra mile to thoroughly learn their clients’ operations so they can create robust and thorough risk assessments. They then begin to offer proactive, real-world solutions.

“Eliminating things like trip hazards, improving premise security and boosting employee safety training are very beneficial when we go to the carrier markets. It shows them that we – Oakbridge and our client – have done our homework and are serious about risk reduction.”

Customer service- based solutions for clients and carriers
Once assessments are completed and suggested risk mitigation solutions are identified, Oakbridge stays in communication with clients to enable and ensure these improvements are implemented and communicated to carriers to reduce costs.

For many operators, keeping insurance premium costs in check is a crucial part of running a profitable business. Depending on how you look at it, success in the market is either a fine line or a double-edged sword. How then, does Oakbridge meet the needs of clients who the company has been servicing, in many cases, for decades with high value coverage at a reasonable price?

“Building a successful Hospitality practice requires creativity,” Cavallin says. “The solutions my team and I provide really get to the heart of what Oakbridge is all about. Customer service is a top priority. We are careful to build good relationships. We know operators and we know their businesses. Establishing trust is a huge part of our success.”

Another part of building strong relationships is clear, constant, concise communication. “We take the time to walk operators through premium changes, explain to them the ‘why’ not just the ‘how much?’ We discuss their goals and obstacles so that we can best tailor plans to their needs.”

Relationships Win The Day
These tenets of outstanding service, common sense and proactive risk reduction are essential in the current market. “We’ve been very careful to build and maintain our carrier relationships. Our team knows the specialists in each category and who will and won’t provide coverage,” Cavallin said. “We avoid the Johnny-come-lately types and stick to the ones we know.”

“The Oakbridge approach – one of sophisticated risk management, best in class back-end operations and adherence to our core value of outstanding service – wins the day when it’s time to renew. Experienced operators know this and remain loyal. Younger operators come around after a claim or two. We don’t forget that this industry is tough, it takes hard work. But we’re equipped to work harder and smarter than our competitors,” he says.