Eating and drinking establishments have very high insurance needs in three separate areas. At Commercial Insurance Resources we analyze each Restaurant, Café, Pizzeria with a specific risk survey. Property coverage for physical damage to equipment, furnishings, building and supplies is the first item to analyze. The second is General Liability coverage to protect You from customers slips, trips and falls on Your premises, and Products Liability coverage due to contaminated food. Restaurantsthat sell or serve liquor or other alcoholic beverages may also need Liquor Legal Liability coverage. The third area is Workers Compensation for employee injuries. In our increasing mobile society, food delivery has become very common. Most restaurants have employee’s delivering meals using their own vehicles. This is the fourth area of concern, Employers Non-Ownership Auto Liability. Today many carriers insure Eating and Drinking Establishments with a Businessowners policy packaging Property, Business Income, Crime and General Liability all in one package.
Property insurance provides coverage for Your Building and the Business Personal Property owner. Most restaurants have extensive Property values that need insurance protection particularly dining room decorations. Many restaurants do not own their building, but have invested considerable money in permanent Improvements and Betterments.
Business Income coverage pays for the loss of income for the business and continuing expenses even if the doors are not open, including employee salaries due to a covered cause of loss at the insured’s premises.
Boiler and Machinery a.k.a. Mechanical Breakdown coverage insures against equipment breakdown that is typically not covered by property insurance policies, warranties and service contracts. Coverage includes losses incurred from the failure of boilers, pressure vessels and a variety of mechanical and electrical equipment.
Employee Theft and Forgery is a modified version of the commercial crime coverage. Most package policies provide a limitation for this coverage.
Commercial General Liability is designed to cover the bodily injury and property damage liability exposures related to operatingYour business. The basic areas covered by the Commercial General Liability include the Your ownership or use of Your premises your own or rent, coverage for defined Contractual Agreements, coverage for the food Products due to contamination, Personal and Advertising InjuryLiability of the insured, and Medical Payments coverage.
Liquor Legal Liability Coverage is designed for bars, restaurants, hotels, motels, package liquor stores or other places where liquor is sold, distributed or served. It handles claims involving Your customer injuring or damaging property of a third party caused by patrons served or provided liquor.
Workers Compensation provides coverage to your workers injured while performing work on Your behalf. Workers Compensationincludes Employers Liability, protecting You against claims brought by Third Parties for Your negligence to your injured worker.
Every State has enacted Workers Compensation laws making this coverage mandatory. Five States, North Dakota, Ohio, Washington West Virginia and Wyoming are monopolistic States. Workers Compensation insurance is paid to the State. If you are working in one of the aforementioned States, You still have to provide Employers Liability coverage either through Your workers compensation policy or YourGeneral Liability policy known as Stop Gap Coverage.
Before commencing work in any State, always be aware of that States Workers Compensation laws.
Commercial Umbrella policies provide additional Liability insurance protection over your primary Commercial General Liability, Business Auto and Employers Liability insurance policies.
Optional Coverage’s to be considered, is not an all inclusive list, but a summary of some of the more common policies or endorsements.
Directors and Officers Liability Coverage insures corporate directors and officers against claims, usually brought by stockholders, alleging loss due to mismanagement.
Employment Practices Liability coverage is available for the legal costs to defend claims against sexual harassment, wrongful termination and discrimination, and the actual legal liability for such acts.
Ordinance or Law Coverage applies when laws require undamaged portions of a building be torn down. Coverage includes costs of demolition of the undamaged portion of the building covered and the increased cost of construction required to bring a damaged building up to current code.
Food Borne Illness Coverage a.k.a. Trade Name Restoration provides coverage due to loss of income by an infectious health situation or media event or combination thereof, with crisis management designed to protect and restore your Trade Name.
Utility Services—Time Element Coverage provides coverage if a covered cause of loss or insured peril damages the off-site utility service provider location and/or power lines forcing a disruption of power to the insured’s operation.
Utility Services–Direct Damage Coverage is the disruption of communications, power or water utility services due to a covered cause of loss to the utility service provider to Your property.
Internet (Cyberspace) Liability offers both first- and third-party cyber coverage as separate coverage parts. First-party coverage is available for extortion, business interruption, loss or damage to a network, extra expense and e-theft. Third-party liability is available for electronic media content, privacy liability and security liability.
Scheduled Property Coverage insures specifically identified and described and a limit of insurance assigned to it. Coverage applies on premises, off premises and in transit.
Spoilage Coverage applies to direct physical loss or damage to perishable stock caused by equipment breakdown or contamination and/or by an interruption of power beyond the control of the insured.
Garagekeepers Coverage is an endorsement that can be added to a business auto policy for restaurants with valet parking. Covers damage to customers’ automobiles in Your care, custody or control.
Bailee Customers Coverage is used to insure bailment situations when accepting personal property of others into your care custody or control, similar to Garagekeepers.
Flood Coverage applies to direct loss or damage by flood to buildings and their contents on either a replacement cost or an actual cash value basis.
Commercial Insurance Resources is an independent insurance agency, representing many National and Regional Insurance Companies specializing in providing eating and drinking establishments the finest coverage needed at an affordable price. Our success is our ability to continually surpass our client’s expectations. We only work with companies that maintain an A.M. Best rating of A- or better. Many factors are considered by A.M. Best when assigning ratings, and one of the most important factors, is the ability of an insurance company to pay claims. “A” rated companies have a greater ability to pay claims in the future due to policyholder reserves, overall pricing of insurance, investments and profit or loss.