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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

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Glossary

Franchise UL 300

Liquor Sales Improvements & Betterments

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Risk Exposures

Operations Franchise vs. Non-franchiseYears in Business/Location/ExpeienceTrue Nature of OperationsHours of Operations% of Liquor Sales

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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

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Other Items of Importance

Improvements & BettermentsPizza DeliveryLoss ControlGL Audit

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Special Exposures for Specific Classes

Fast FoodBarbequeCaterers

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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.

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Carrier Enhancements

SpoilageOff Premises Utility Services-Direct DamageBusiness Income

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Carrier Appetite

HartfordTravelersAFI

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Preferred SIC CodesSupport Document Located on the Branch

& GA websites

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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

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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 @

mglaug@twfg.com

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QUIZ

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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:

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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

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2. Name three Operations Exposures that are evaluated with a restaurant submission.

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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

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3. Name two Property Exposures other than cooking.

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3. Name two Property Exposures other than cooking.

a. Design of buildingb. Constructionc. Age of buildingd. Sprinkler Protection

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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.

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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.

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5. Name three important restaurant related coverages that are often addressed in carrier enhancements, but the limits need to be carefully selected. Describe each.

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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

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Questions???