The year 2020 will go down as the most socially challenging year of our lifetimes. We’re all looking forward to a better year in 2021 and getting back to spending time with friends and family, attending sporting events and concerts, and enjoying one another’s company at our favorite restaurants and bars. But before we leave 2020 in the dust, we wanted to thank all of you, our agents and policyholders, for all that you have done to weather the storm and work with us to help business owners as they adapt to the new rules and restrictions they face. We’re truly thankful for all of you.
Thanksgiving gatherings won’t be the same this year but giving thanks for our many blessings will never go away. Whichever way you celebrate this year, we wish you a safe and Happy Thanksgiving!
On March 24, 2020, the MA Commissioner of Insurance issued bulletin 2020-05 regarding flexibility in the issuance and administration of insurance during COVID-19.
On Monday, March 16, 2020, Hospitality Insurance Group was one of the first companies to respond to the financial crisis facing policyholders. On that day we issued the Hospitality Insurance Group’s COVID-19 Response to our agents and policyholders. The response is posted here for your reference. The response plan properly addresses the actions requested by the commissioner of insurance.
We are committed to working with our agents and policyholders during these trying times.
COVID-19 Outbreak Frequently Asked Questions
A – Yes. We will adjust annual liquor sales based on the percentage of the policy period affected by the shutdown and re-calculate premium on that basis. We will automatically endorse each liquor liability policy *** once we know the length of closure in each state. We are using a start date of March 16, 2020 in all states. We will watch for states to announce their official reopen orders. We will use those dates to make the calculation.
See the * note below on how credits will be processed.
IMPORTANT – If your policy renews during the shutdown period we will have a two-step process.
- We will calculate your refund on the expiring policy since we already know the start date (March 16, 2020) and the end date would be your expiration date. The amount of the credit for the closure period will be refunded as stated below.**
- Your renewal policy will have an adjustment calculated from the renewal date until the end of the mandated closures as indicated by your state.*
* If the policy is paid in full, the overpayment will be refunded to either the insured or finance company. If there is balance owed, that balance will be reduced by the amount of the credit.
** If the policy is paid in full the overpayment will be refunded to either the insured or finance company.
*** Does not apply to liquor liability policies for liquor stores or temporary event policies.
A – Yes, these are premium bearing endorsements and, as such, will result in a return commission transaction for agencies.
A – We are making two adjustments to sales figures that are submitted and include no sales for the shutdown period. Here’s what we’ll be doing:
- The sales figures submitted will not have any sales for the time period of March 16, 2020 through the reopen date approved by the states. You’ll agree that none of us expect zero sales for the same months next year. In order to estimate a full year of sales we will gross up the sales figures you submitted using average sales for the months submitted.
- Upon reopening, it is expected that businesses will experience reduced sales from what they normally have. We are taking this into consideration in determining the sales figure used for rating the renewal policy. To get this reduced sales number we will adjust grossed up sales downward, assuming there will be a period of restricted capacity and a longer period of reduced demand. The adjustments will reflect estimates of the reductions in each period. If a business has not experienced any shutdown (package/convenience stores) we will use their actual sales figures as submitted.
A – States and municipalities are working to help hospitality businesses make the most of outdoor space for dining during the reopening period. If you are newly adding outside dining or expanding beyond your pre-Covid outdoor dining capacity, we need to know more about what you are offering. Please complete the new “Expansion of Outdoor Premises” questionnaire and submit it to your underwriter.
A – No. We will cancel flat. No LPR is needed.
A – NO – Please refer to the information below.
When you review your insurance policy, please pay careful attention to the Coverage terms and Exclusions and specifically note the following:
- Property Damage: Our standard policy covers “direct physical loss of or damage to Covered Property….” (Emphasis added).
- Business Income. Our standard policy includes coverage for loss of Business Income, following a 72 hour waiting period, due to the suspension of your operations. Please note this coverage is location specific and may only apply to certain locations on your policy. Under the terms of the policy, “The suspension must be caused by direct physical loss of or damage to property at the described premises. The loss or damage must be caused by or result from a Covered Cause of Loss.” (Emphasis added).
- Civil Authority. Our standard policy includes coverage for the loss of Business Income “when a Covered Cause of Loss causes damage to property other than your property” and “action of civil authority is taken in response to dangerous physical conditions resulting from the damage or continuation of the Covered Cause of Loss” that prohibits access to your property. Under the terms of the policy, your property must be “within that area but not more than one mile from the damaged property”. (Emphasis added.)
- Exclusion for Virus or Bacteria: Our standard policy includes an Exclusion for loss or damage caused by “Any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.”
A – Your General Liability policy with Hospitality Insurance Group does not cover you for the delivery of food done by you or your employees. This is not a coverage we offered before the crisis. However, if you have contracted with a third party vendor such as Uber Eats, Grub Hub, etc. you should refer to your contract with them. If you wish to deliver food using your employees, you should contact your agent about purchasing the proper coverage from an auto insurer as this is an auto exposure.
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Hospitality Insurance Group provides liquor liability insurance coverage for restaurant establishments in Massachusetts, Connecticut, New Hampshire, North Carolina, Pennsylvania, Rhode Island and Vermont.
When your business serves or sells liquor, it’s always best to play it safe. At Hospitality Insurance Group (HIG) we seek to provide the best liquor liability insurance coverage possible to protect establishments in what is known to be a high-risk industry.
We offer commercial property, general liability, liquor liability and excess policies to owners of establishments that serve or sell liquor including bars, taverns, restaurants, social clubs and liquor stores, as well as caterers and other qualified businesses.
For Independent Insurance Agents looking to sell insurance to their clientele in the restaurant industry, we offer attractive commissions and the ability to reach a largely untapped market.
For bar and restaurant owners, liquor store owners, social clubs, caterers and other business owners with the potential for liquor liability, we offer affordable, comprehensive coverage, with add-ons for assault and battery and property damage.
Pay Your Premium Online
Hospitality Insurance Group is excited to announce that we’ve recently partnered with Xpress-pay, a leading ePayment solution provider, to provide our policyholders with a faster, more convenient way of making premium payments. We’re confident this will be a great addition to the service we provide you!