Download - Restaurants
TW
FG C
omm
ercial Business School – R
etail & Service
1
Restaurants
TW
FG C
omm
ercial Business School – R
etail & Service
2
TWFG Commercial Business SchoolRestaurants
Learning Objectives
To understand the important risk exposures for this class of business
To be familiar with the common coverages provided in carrier enhancements
To be aware of the admitted market appetite
To be able to successfully complete ACORD applications
TW
FG C
omm
ercial Business School – R
etail & Service
3
TWFG Commercial Business School Restaurants
Glossary
Franchise UL 300
Liquor Sales Improvements & Betterments
TW
FG C
omm
ercial Business School – R
etail & Service
4
TWFG Commercial Business School Restaurants
Risk Exposures
Operations Franchise vs. Non-franchiseYears in Business/Location/ExpeienceTrue Nature of OperationsHours of Operations% of Liquor Sales
TW
FG C
omm
ercial Business School – R
etail & Service
5
TWFG Commercial Business School Restaurants
Risk Exposures
Property Design of BuildingConstruction/PPC/Sprinkler Protection/Age of BuildingNFPA 96 Standards
UL300 Approved Fire Suppression3rd Party Service ContractsDeep Fat Frying Protection
Type of CookingPlayground/Playscape Equipment
TW
FG C
omm
ercial Business School – R
etail & Service
6
TWFG Commercial Business School Restaurants
Other Items of Importance
Improvements & BettermentsPizza DeliveryLoss ControlGL Audit
TW
FG C
omm
ercial Business School – R
etail & Service
7
TWFG Commercial Business School Restaurants
Special Exposures for Specific Classes
Fast FoodBarbequeCaterers
TW
FG C
omm
ercial Business School – R
etail & Service
8
TWFG Commercial Business School Restaurants
Carrier Enhancements
Many carriers apply class specific coverages based sales, property values, and limits of coverage selected. Frequently the additional coverages or enhancements are only adequate for incidental or moderate exposure levels
It will be up to you and your prospect/insured to determine if the level of coverage provided meets their needs.
TW
FG C
omm
ercial Business School – R
etail & Service
9
TWFG Commercial Business SchoolRestaurants
Carrier Enhancements
SpoilageOff Premises Utility Services-Direct DamageBusiness Income
TW
FG C
omm
ercial Business School – R
etail & Service
10
TWFG Commercial Business School Restaurants
Carrier Appetite
HartfordTravelersAFI
TW
FG C
omm
ercial Business School – R
etail & Service
11
TWFG Commercial Business School Restaurants
Preferred SIC CodesSupport Document Located on the Branch
& GA websites
TW
FG C
omm
ercial Business School – R
etail & Service
12
TWFG Commercial Business School Restaurants
Submission ChecklistA submission checklist is the easiest way to ensure that all exposures have been accounted for and addressed
Submission checklist is available on the Branch & GA websites
TW
FG C
omm
ercial Business School – R
etail & Service
13
TWFG Commercial Business School Restaurants
Case StudyThis segment includes a Case study. For those Branches participating in the Certified Commercial Branch Agency (CCBA) Program you will need to complete and pass in order to receive credit for this segment. For Branches not participating, the Case Study is optional
For GA agents the Case Study is optional.
The Case Study material will be available on the Branch and GA portals
RETURN COMPLETED CASE STUDIES TO MARK GLAUG @
TW
FG C
omm
ercial Business School – R
etail & Service
14
TWFG Commercial Business School Restaurants
QUIZ
TW
FG C
omm
ercial Business School – R
etail & Service
15
TWFG Commercial Business School Restaurants
1. A restaurant’s primary property exposures come from the cooking operations. Name the three elements of the NFPA 96 Standards that deal with kitchen fire safety:
TW
FG C
omm
ercial Business School – R
etail & Service
16
TWFG Commercial Business School Restaurants
1. A restaurant’s primary property exposures come from the cooking operations. Name the three elements of the NFPA 96 Standards that deal with kitchen fire safety:
a.UL 300 approved cook-top and fryer fire suppression system
b.Regularly scheduled inspection and cleaning of hood and duct vents, grease traps and fire suppression systems.
c.Proper separation of cooking surfaces from deep frying operations
TW
FG C
omm
ercial Business School – R
etail & Service
17
TWFG Commercial Business School Restaurants
2. Name three Operations Exposures that are evaluated with a restaurant submission.
TW
FG C
omm
ercial Business School – R
etail & Service
18
TWFG Commercial Business School Restaurants
2. Name three Operations Exposures that are evaluated with a restaurant submission.
a. Franchise vs. Non-Franchiseb. Years in business at the same location with the same managementc. True nature of operationsd. Hours of operationse. Liquor sales as a % of total sales
TW
FG C
omm
ercial Business School – R
etail & Service
19
TWFG Commercial Business School Restaurants
3. Name two Property Exposures other than cooking.
TW
FG C
omm
ercial Business School – R
etail & Service
20
TWFG Commercial Business SchoolRestaurants
3. Name two Property Exposures other than cooking.
a. Design of buildingb. Constructionc. Age of buildingd. Sprinkler Protection
TW
FG C
omm
ercial Business School – R
etail & Service
21
TWFG Commercial Business SchoolRestaurants
4. Name an important and often overlooked type of BPP coverage for restaurant owners who do not own the building, and describe how this coverage applies.
TW
FG C
omm
ercial Business School – R
etail & Service
22
TWFG Commercial Business School Restaurants
4. Name an important and often overlooked type of BPP coverage for restaurant owners who do own the building, and describe how this coverage applies.
a. Improvements and bettermentsb. This is the insured’s “use” interest in improvements that the insured has paid for. Because the improvements become part of the building, the insured (as a tenant) does not own them and cannot take them with him if he were to leave. However, the insured does expect to be able to use these improvements. It’s the value of this “use” that is insured. In simple terms, the use value is the cost divided by the depreciable life.
TW
FG C
omm
ercial Business School – R
etail & Service
23
TWFG Commercial Business SchoolRestaurants
5. Name three important restaurant related coverages that are often addressed in carrier enhancements, but the limits need to be carefully selected. Describe each.
TW
FG C
omm
ercial Business School – R
etail & Service
24
TWFG Commercial Business SchoolRestaurants
5. Name three important restaurant related coverages that are often addressed in carrier enhancements, but the limits need to be carefully selected. Describe each.
a. Spoilage – Spoilage of perishable stock due to a loss of power or breakdown of cooling machineryb. Off-Premises Utility – Loss of power due to physical damage to an off-premises power utility sourcec. Business Income – Lost revenue and continuing expenses due to a partial or complete shutdown after a covered loss
TW
FG C
omm
ercial Business School – R
etail & Service
25
TWFG Commercial Business School Restaurants
Questions???