Thinking outside the box: insuring the pizza delivery business requires an appetite for risk management.(Property/Casualty: Auto Package)(Papa John's International Inc.)

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When its third-party captive for franchisees was hit with a loss in 2004, Papa John's Pizza opted to insure on a first-dollar basis and bring in a third-party carrier.

But something happened along the way.

The pizza delivery chain's risk management department evolved as it dealt with franchisees on coverage issues related to non-owned automobile and workers' compensation. In fact, Risk Services Corp. grew into its own profit center.

Now the Papa John's subsidiary is one of just seven agents nationwide that is authorized to write coverage for Fireman's Fund's pizza program. While 49% of Papa John's franchisees obtain coverage through Risk Services Corp., the Louisville, Ky.-based agency also writes Fireman's Fund policies for non-Papa John's restaurant delivery businesses.

"We've taken it to the next level by saying, 'why should we just do insurance for just us? Why don't we just do insurance?'" said Georgianna Stump, senior director of Risk Services Corp. "We're now a profit center. We're our own corporation."

Risk Services Corp. has …