For Nightclubs, Upscale Casual, and Fine Dining Restaurants
Case Studies
We work with nightclubs, upscale casual, and fine dining restaurants to help them identify, transfer, and manage insurable risks.We have found that most owners of restaurants and nightclubs do not have the time or expertise to read their policies instead relying on their agents to do so.
Many agents rely on their insurance companies pre-packaged programs to provide the necessary coverage.
Like any product off the shelf, one size does not fit all.We read policies and customize them to fit your needs.
We provide turnkey safety and loss control material that will establish your nightclub or restaurant as "Best in Class" from an insurance company perspective.Below you will find a brief summary of some of the issues we discovered when we reviewed these nightclub/restaurant owners policies.
Account #1Fine Dining Restaurant Group
No Loss of Income Coverage Due to Food Borne Illness
Business Income coverage written with Co Insurance Clause
Business Interruption Limit only provided 9 months of coverage
48 hour waiting period before any loss of income would be paid
No Coverage for one of the entities under the Umbrella policy
No Coverage for two of the management companies under any of the policies
No Coverage for Mental Anguish
No Risk Transfer in Place with Suppliers, Maintenance Contractors, or Valet Service
No Written Loss Control Program
No Prearranged Medical Care for Injured Workers
No Ordinance or Law Coverage
Employee Handbook had no reference to the insured entities
Our Results:Provided solutions to all of these issues and delivered an 18.2% reduction in renewal premiums.
Account #2Well Established Upscale Casual Restaurant
Incorrect Experience Modification Factor: We reviewed the experience modification worksheet and loss history, we discovered an error in the reporting of a claim to the NCCI.This resulted in the publication of an incorrect experience modification factor.The experience modification factor applied to the insured’s premium was 10% higher than it should have been.This error would have increased the workers compensation premium for the 2008, 2009 and 2010 policy renewals.
Inadequate Utility Service Direct Damage and Time Element Limits
Inadequate Property Insurance Limits
No Loss of Income Coverage Due to Food Borne Illness
No Risk Transfer in Place with Suppliers, Maintenance Contractors, Valet Service
No Prearranged Medical Care for Injured Workers
Our Results: 10% Reduction in the experience modification factor which reduced workers compensation cost for a period of 3 years. Increased limits of insurance,improved claims handling management, obtained additional insured endorsement from product supplier.
Account #3Upscale Casual and Fine Dining Restaurant Group
48 Hour waiting period on all business income losses
No Coverage for Loss of Income due to Food Borne Illness
No Coverage for Leasehold Interest
No Coverage for Backup of Sewer and Drains
No Risk Transfer in Place with Suppliers, Maintenance Contractors, and Valet Service
No Written Loss Control Program
Inefficient Management of the Workers Compensation Experience Modification Factor
This insured was advised to pay all their small workers compensation claims to keep their experience modification factor low.We did a projection of the effect of ten $600 medical only claims. We compared the $6,000 cost of paying the claims direct versus turning them over to the insurance company.The direct payment represented a far greater cost than the effect an increased experience rating factor would have on their premium. Our Results: Provided solutions to all of these issues and delivered a 20% reduction in renewal premiums.
