Archive for Food & Beverage
Alcoholic Beverage Manufacturers & Distributors
Because of the tremendous exposure to burglary losses of stock and the need to maintain an adequate inventory of whiskeys, wines, and liquor, liquor dealers and stores are target risks for burglars and other criminals. Some insurers offer needed coverages piecemeal, on a stand-alone basis. Others combine all the necessary coverages, including liquor liability, in a package policy. These package policies include high liability limits for both commercial general liability and liquor liability. Careful consideration must be given to the firmâ€™s ownership, peak concentration of values at certain times of the year, the firm’s business reputation, and adequate lighting and police surveillance when the store is not open for business.
Restaurants and taverns that brew their own beer and microbreweries that make and sell small batches of beer are increasing in popularity. These small breweries are able to compete with larger commercial breweries because of their smaller size, reduced costs, and limited distribution area. Programs are available to insure the equipment and supplies they use to brew the beer as well as their commercial general and liquor liability exposures.
Catered Affair Cancellation Insurance
This specialty coverage protects the insured that hosts a catered party, dinner, or celebration event. Coverage applies for the costs incurred when the event is cancelled, postponed, or curtailed. Covered costs are the deposits that cannot be recouped and other contractual obligations that are enforced following the change in plans.
Catering and Caterers E&O
This coverage protects catering services, hotels, and others that provide catered event services to their customers or guests for errors or omissions they make that result in a lawsuit. Coverage applies to only the time period that starts when the event begins and ends when it ends. Coverage applies to all services that the caterer is contractually obligated to supply. Examples of services provided are the band, hall, food, flowers, and parking. Failure to provide services as promised has been known to cause pain, suffering, and humiliation. A poorly handled event can also result in the party that requested the event losing clients and sustaining financial loss.
Convenience stores are usually a combination of a grocery store, variety store, and gas station. Many standard markets provide property and general liability coverages. Liquor liability, underground storage tank (UST) liability, crime, and workers compensation coverages may only be available in a specialty market.
Farmers markets are open-air markets where farmers and others display and sell their goods. While the primary draw is the fresh produce, vendors may sell baked goods, fresh fish and meat, prepared items, and crafts. Food concessionaires may also sell various types of restaurant food and drinks. The local market committee and local regulations determine the type of vendors that are permitted.
Food Street Vendors
Cities, towns, and municipalities license food vendors to sell food from mobile units on sidewalks or along streets and roads. These vendors sell a wide variety of food, including hot dogs, tacos, egg rolls, various ethnic sausages, and other ready-to-eat foods. Insurance packages are tailored to the vendor’s needs and usually cover property, inventory, supplies, general and products liability, and auto liability.
Food trucks are licensed by cities, towns and municipalities to sell food from trucks along streets and roads or in food truck parks. These food trucks sell a wide variety of food that, while portable, are similar to items available at popular restaurants. Insurance packages are tailored to meet the needs of the food service industry and will usually cover the truck, other property, inventory, supplies, general and products liability, and auto liability.
Food-Borne Illness: Loss of Income
This coverage insures restaurants against unexpected loss of income and extra expense when they are forced to close for a short time due to a food-borne illness. It is often provided by endorsement to commercial general liability coverage but it may be written as a separate policy.
Health Foods Industry
Health foods have become more popular because of concerns about the potential problems with foods grown using a variety of pesticides, herbicides, and other chemical compounds. Property and casualty insurance programs that include products liability coverage are available to manufacturers, distributors, wholesalers, and retailers of a wide range of health food products. This industry includes natural foods, organic foods, food supplements, and personal care products.
The standard markets usually insure hotels. However, some are much more difficult to place because of high property values and/or difficult liability exposures. Some hotels located in coastal areas are subject to heavy windstorms and hurricanes. Casino operations at some hotels introduce unique and unusual crime and liability exposures, while restaurants and bars present liquor liability exposures. Swimming pools, lakes, skating rinks, skiing, and other leisure activities for guests are examples of difficult liability exposures. Some hotels arrange trips for guests and programs for conventioneers.
Nightclubs are entertainment venues with live bands or DJs and dancing. Some nightclubs are for under 21’s and alcohol free but most have significant liquor exposures. There is usually an entrance fee or cover charge and bouncers are often employed to maintain security both at the door as well as within the establishment. Commercial property, general liability, liquor liability, and workers compensation coverages are all needed but may be difficult to place.
Health foods are becoming increasingly popular as the nation grows more concerned about potential problems with foods grown using a variety of pesticides, herbicides, and other chemical compounds. In addition, foods preserved with chemicals are thought to be (or may be) linked to cancer. Property and casualty insurance programs, including important products liability coverage with high limits, are available to manufacturers, distributors, wholesalers, and retailers involved with a wide range of health products, including natural foods, organic foods, food supplements, and personal care products.
Pizza Delivery Services
Special complete package programs tailored to the needs of pizza delivery operations are available. While most of the coverages provided are standard, these programs also include the hired and non-owned auto liability coverage these operations need but that standard markets are usually unwilling to provide.
Product Contamination Insurance
Product contamination coverage applies when an individual has contaminated a product or has threatened to do so. It covers related costs, such as necessary destruction of inventory, lost profits, business interruption, product recall, and product rehabilitation. When a product contamination case arises, crisis management and loss prevention firms can be called in to help the insured reduce the chances that it will continue to be a target and minimize damage that might arise. Coverage does not apply to third-party liability or extortion payments. Premiums are based on the size of the business and an assessment of the exposures.
Many insurance companies consider this class of business to be accommodation business. Loss experience on restaurants is a problem, largely due to the high incidence of fire as a result of ignition of grease on cooking equipment and in hoods and ducts. Other frequent causes of fires are defective electrical wiring, electrical appliances, and poor housekeeping. Installing automatic fire extinguishing systems reduces fire loss potential from ignition of grease during cooking operations. Liability exposures are considered less significant than the property exposures unless the restaurant serves alcohol. These risks are usually written subject to rigid inspections and the insuredâ€™s cooperation with loss control recommendations.
Supermarkets are retail grocery stores that have more than 5,000 square feet of floor area. They have large open areas without fire cut-offs and extremely combustible or highly damageable contents with blank wall construction. This makes it difficult to fight fires from outside the building except from the front. There are extensive electrical requirements that place extreme demands on the electrical wiring. Another hazard in most supermarkets is large amounts of trash and waste materials that accumulate. Liability hazards are less serious than fire hazards but issues such as congested aisles, overstacked displays or shelves, poor lighting, and the physical condition of parking areas and sidewalks are present. The products liability hazards of foreign objects in prepared foods and spoilage of food in dairy and refrigerated areas must be considered.