Restaurants have a diverse set of needs when it comes to insurance. We see many slip and falls in this industry, especially in Collier County due to the nature of our demographics. Cooks and dishwashers are constantly getting oil burns and/or cuts from broken glasses. Outside of these claims which are to be expected in the industry, we have seen some not so common liabilities arise from operating a restaurant.
Following a foodborne illness, accidental contamination, malicious contamination or product extortion, the policy will respond to the financial losses related to the incident. Standard coverage automatically includes income from royalties and a full policy limit for product extortion. No additional premium is charged when new locations are opened due to “organic growth” during the policy period.
Financial losses include:
- Pre-incident expenses: Consultant fees and expenses plus chemical analysis, forensics and/or physical examination in order to ascertain whether a loss has occurred. The policy’s self-insured retention does not apply to these costs. Specialized consultants are available 24 hours a day, seven days a week to the insured.
- Recall costs: Compensation for destruction of contaminated products on premises.
- Business interruption: Loss of gross revenue and extra expenses for up to 18 months following an incident (no minimum percentage threshold for the reduction in revenue in order for the business interruption coverage to trigger).
- Rehabilitation expense: Reasonable and necessary expenses for a period of up to twelve months to reestablish the insured’s products to the reasonably projected level of sales or market share anticipated prior to the incident.
- Extortion costs: Full policy limits for product extortion costs paid in response to demand made upon the insured under threat to commit a malicious tampering.
- Workplace violence: Coverage in the event of an international or unlawful act of deadly force or threat (resulting in bodily injury or death) directed specifically against the employees, customers or vendors or a covered restaurant location.
- Consultant and advisor costs: Fees and costs of consultants to assist the insured during an incident as per crisis management below.
- Crisis management: Most of these products come with a 24-hour crisis hotline which provides access to independently owned and operated consultants available to assist their clients in handling the various exposures. Each exposure has unique characteristics and, therefore, demands its own specialist consultant from these leading U.S. based providers available on a priority basis at all times. Each Specialty Group policyholder will have access to the following specialized assistance:
Any business that sells or serves liquor opens its doors for a liability claim. This is usually because someone got drunk to the extent that injuries or property damages were the result. While it’s logical that the inebriated person should be the one to pay, in reality, we live in America and nobody ever takes responsibility for their actions. The business that served the alcohol is often held liable for injuries, damages, or both that occurred as a result of actions, behaviors, or conduct of a customer who drank too much.
A common example of an alcohol-related claim occurs when an intoxicated patron leaves a bar, gets into his car, drives, and commits a vehicular manslaughter act. In this case, the victim’s family could now sue the bar for both civil and criminal damages. As another example, suppose at a catered event, a restaurant serves alcohol and two guests are subsequently involved in a fight, whereby serious injuries are incurred. These are just two of the many scenarios that can occur when a business that sells or serves alcohol may be held liable for the actions of the inebriated persons served.
As might be expected, a good deal of alcohol-related liability claims filed against bars, taverns, and restaurants are a result of liquor-induced fights or altercations. In fact, the mere act of an employee escorting an unruly patron to the exit is frequently all that is necessary to trigger an assault and battery allegation. Therefore, assault and battery coverage should be included in your liquor liability policy. Most importantly, litigation costs, including the fees to retain an attorney and court costs are covered under a liquor liability policy.
- Product Recall & Contamination
- Food Spoilage Coverage
- Workers Compensation
- Assault & Battery
- General Liability
- Equipment Insurance
- Liquor Liability
- Property Insurance
- Business Interruption Insurance
- Temperature Change
- Equipment Breakdown
Similar to restaurants, hotels often experience slip and falls. Often, we see rooms that are trashed or damaged and hotel kitchen employees getting injured from cuts and burns. Outside of these highly recognized claims we have also seen some different issues that arise depending on your business.
Real Estate Increased Tax Assessments: Hotel owners often face increased property taxes after rebuilding due to a covered loss. Some products will reimburse you for up to $50,000 for the cost of increased taxes due to reassessment after construction, repair or rebuilding after a covered loss.
Pollution Events: The use of pool maintenance chemicals by hotels could result in injury to guests. Often times there are also septic or water systems below ground that are not covered by a traditional policy. A Pollution Exclusion amendment provides coverage for bodily injury due to pool chemicals as well as pesticide application, cleaning supplies, and fumes from interior finish components.
Professional Liability And Errors & Omissions: Hotels risk additional liability exposure when they employ fitness and spa professionals, or event and wedding planners. By including Professional Liability and Errors and Omissions, your insurance carrier will be there to cover for bodily injury or economic damages incurred due to wrongful acts or mistakes by these employees.
Off-Premises Reservation and Event Cancellation: Hotels risk financial loss when third-party vendors, such as online reservation services or special event promoters, fail to perform as expected. With Off-Premises Reservation and Event Cancellation coverage, your business can be covered for lost business income incurred due to a covered cause of loss at the premises of a reservations vendor, or from the cancellation of an off-site special event due to a covered cause of loss.
- Business Interruption Insurance
- Access to Premises (Business Access)
- Communicable Disease Extra Expense
- Green Building Coverage
- Key Employee Replacement
- Preservation of Historic Features
- Sexual Abuse and Molestation
- Pollution Events
- Coverage for Salon and Spa