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Agent Update: Verification Of Restaurant Sales

How To Verify Restaurant Sales With Hospitality Insurance Group

 

We are pleased to announce the following changes to our current audit procedures to simplify our liquor liability insurance renewal and new hospitality insurance submissions, increase the accuracy of pricing, and eliminate the unpopular audit process.

Our current process requires two steps, one for completing the renewal application and a request for the insured to complete a self-audit. Over the years this process has been confusing to policyholders and compliance on self-audits has been very low.

Billing additional premium for an expired policy term is confusing and upsetting to insureds. To enhance our ease of doing business we are combining these steps into a new one-step process described below.

Effective October 1, 2018, we will discontinue the practice of sending self-liquor-audit requests to policyholders. Sales verification information of the restaurant (see options to choose from) will now be submitted with new and renewal business applications and will provide us with the ability to accurately price business on the new or renewal date for the upcoming policy period with no further action required.

Verification will eliminate the need to process audit premium invoices for additional and return premiums as we’ll only look to make policy sales figure changes prospectively.

To provide you with additional time to gather the sales verification information, we will be increasing the lead time for receiving your agency’s policy expiration list from 60 days to 90 days.

You may find a listing of the options for sales verification below.

For new restaurant ventures, we’ll accept a pro forma business plan with estimates for sales and base our quotes on that estimate. You may review sales transactions after six months and endorse the policy to reduce/increase sales based on actual supported sales results.

Sales verification is a critical item in developing and maintaining a competitive rate structure, and we appreciate the input we received from many of you while we were developing this new process.

Thank you in advance for your help in making this a more efficient and policyholder friendly experience.

*Sales Verification Documentation Options

  • Print out of the insured’s POS system for the past 12 months
  • MassTaxConnect – Mass online Sales Tax form for the past 12 months (Massachusetts Only)
  • Accounting statement for the past 12 months (signed by a licensed accountant)
  • Pro Forma business plan (new ventures only)

You can find the new liquor liability application form here and the renewal application here.

Disclaimer: While we intend to replace the majority of premium audits with this new procedure, Liquor Liability policies remain auditable, and the company reserves the right to audit any insurance policy.

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Why The Cheapest Restaurant Insurance Isn’t Always The Right Plan

Why The Cheapest Restaurant Insurance Isn’t Always The Right Plan

Why The Cheapest Restaurant Insurance Isn't Always The Right PlanAs the saying goes, “you get what you pay for!” This adage has been around forever and it is as true now as the first time the statement was made.  Let’s face it, nobody wants to pay more for an item than they have to. However, usually, when you opt for the cheapest restaurant insurance, it could put your establishment at risk to lose everything you’ve worked so hard to build. 

Your insurance coverages fall into this category of purchases.  What makes it even more difficult to spend more money on this purchase is that insurance is an intangible product, meaning it can’t be seen, touched, sniffed or otherwise handled by the consumer. You purchase insurance and hope you never have to use it.  Insurance is a product you purchase to provide you with peace of mind, knowing that if you ever do have an insurance claim you will be properly covered and able to resume/continue normal operations.

The problem with purchasing the wrong insurance coverage is that you won’t usually find out until you’ve had a claim and it doesn’t provide you with the coverage you thought it would.  Maybe your building is underinsured and your payment won’t be enough to properly rebuild or make repairs. Maybe you have a general liability claim that isn’t covered because of an exclusion in the policy.  Having the correct limits and coverages in a policy are reasons some policies cost more than others. The best way to compare insurance policies is to look at them from a value perspective. Value is an assessment that includes not only a comparison of the price but also looks at what the product includes for features and benefits.  Along with coverage limits, coverages provided, exclusions and deductibles, you should look at the company providing the coverage. Is the company financially stable, meaning will they be available to pay claims when you need them? Does the company know about my business? This can impact their ability to properly settle claims that are specific to your industry.  

Working with an independent agency that knows your business can help you make a proper value assessment as they represent multiple insurance companies and they are skilled at determining the differences in multiple insurance proposals.  So, the next time you renew your insurance don’t be pennywise and pound foolish and make your decision based on who has the lowest price. That could cost you so much more in the event of a claim. Base your decision on which proposal offers the best value, meaning a combination of price and the proper coverage for your business.

 

You’ll sleep well knowing that you have the insurance coverage you need to protect the business you’ve worked so hard to build.

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May 2018 Liquor Liability Insurance Policies

Take a look at some of the liquor liability insurance policies Hospitality Insurance Group wrote in May 2018 including the type of coverage included, insurance discounts applied and a glimpse at the total insurance premium.

  • Restaurant/Bar
  • Asheville, NC
  • $1M/$2M
  • $130,000
  • 37%
  • GL A&B, Property Damage
    • Alcohol Awareness Training
  • 5107(CP, GL, LL, Excess)  (LL – $1,174)

 

  • Bar / Tavern
  • Mattapan, MA
  • 1M/1M/2M
  • 240,585
  • 77%
  • GL A&B
    • Alcohol Awareness Training
    • Loss Free
  • $7,901

 

  • Casino w/ Bar
  • Hampton, New Hampshire
  • GL and Liquor 1000/1000/2000
  • 883000
  • 78%
  • GL A&B Endorsement
    • Alcohol Awareness Training
    • Member of Restaurant Association
    • Elite Discount
    • Loss Free
  • 15,037

 

    • Alcohol Awareness Training
    • Member of Restaurant Association

 

    • Alcohol Awareness Training

 

    • Alcohol Awareness Training

 

If you are an Independent Insurance Agent, click here to learn more about working with Hospitality Insurance Group to provide liquor liability insurance to your customers.

If you are a business owner looking for liquor liability insurance coverage, click here to contact one of our preferred Independent Insurance Agents or find answers to some of your frequently asked questions about our insurance coverage here.

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April 2018 Liquor Liability Insurance Policies

Take a look at some of the liquor liability insurance policies Hospitality Insurance Group wrote in April 2018 including the type of coverage included, insurance discounts applied and a glimpse at the total insurance premium.

 

Bar & Grille in New Bedford, MA
GL A&B & Property Damage
1000/1000/2000 LL
Total Sales: $1,877,000
Liquor to Food Sales Ratio: 39%
Endorsements/Discounts Applied:
Alcohol Awareness Training, Elite Discount, Loss Free
Total Premium: $20,218
Restaurant in McKees Rocks, PA
$1M/$1M/$2M
Total Sales: $2,425,974.00
Liquor to Food Sales Ratio: 43%
Endorsements/Discounts Applied:
GL A&B and Property Damage
Alcohol Awareness Training, Member of Restaurant Association
Total Premium: $17,840
Restaurant in Fall River, MA
CPP: $80,000 BPP; $60,000 BI; $1,000 Deductible; GL: 1M/2M; LL: $1M/$2M
Total Sales: $130,000.00
Liquor to Food Sales Ratio: 10%
Endorsements/Discounts Applied:
GL A&B
Alcohol Awareness Training
CP: $831; GL: $750; LL: $949 = $2,530
Restaurant in Chester, CT
1M/1M/2M
Total Sales: $1,400,000.00
Liquor to Food Sales Ratio: 28%
Endorsements/Discounts Applied:GL A&B
Alcohol Awareness Training
Total Premium: $3,818

If you are an Independent Insurance Agent, click here to learn more about working with Hospitality Insurance Group to provide liquor liability insurance to your customers.

If you are a business owner looking for liquor liability insurance coverage, click here to contact one of our preferred Independent Insurance Agents or find answers to some of your frequently asked questions about our insurance coverage here.

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Sangrias & Swim-Up Bars

Liquor Liability For Swim Up BarsAs the sun gets hotter, many will soak up the sun, swim up to a bar and reach for a cold drink, like Sangria to keep cool.
Swim-up bars are not just something you find on the islands — they exist right here in New England.
But, have you ever considered the risks the restaurant/bar owner takes on serving alcohol at a pool or beach bar?
Serving alcohol at a pool or beach bar opens you up to risks, such as stepping on glass, drowning, or underage drinking.
In this claim filed in Massachusetts, a man suffered serious nerve damage to his foot after stepping on broken glass in the pool from a beer bottle served at the poolside bar.
Also, alcohol will not only dehydrate your guests, but can impair senses, alter their sense of distance, and cause feelings of disorientation and confusion, while they are in the water.
The Centers for Disease Control and Prevention says that “alcohol use is involved in up to half of adolescent and adult deaths associated with water recreation.” 
If you have a poolside bar or are considering opening one, then we recommend mapping out a plan in advance before an accident occurs.
From an insurance perspective, some of the things we immediately think of include:
Should you have a waiver of liability at the entrance signed by all that enter?
Are you allowing kids around the premises? What if something happens to the child while their chaperone was intoxicated? Is it the lifeguard’s responsibility? What if a lifeguard was reckless?
Where do you draw the line in the sand once someone leaves your establishment and goes on to the beach?
Will you have lifeguards on site?
To help mitigate the risk involved with a swim up or poolside bar, we recommend:
  1. Serving ice water, or having a water station available for guests to re-hydrate at their convenience.
  2.  Serving beverages in plastic cups.
  3. Making sure that there are signs that say “no glass allowed” around the area.
  4.  Not allowing lifeguards to use their phones during work hours so their full attention can be on guests at the pool.
  5. Requiring a government-issued photo identification.
  6. Distributing wristbands.
With the 4th of July just around the corner, learn more about summertime safety in our blog “6 Tips For A Safe 4th Of July Weekend.”
Please be advised that the opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute a legal opinion.
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How Much Will Liquor Liability Insurance Cost For A Temporary Event?

Wine & chocolate tastings, Bar Mitzvahs, and weddings are just a few examples of “temporary” events where we write their liquor liability insurance. But one of the most frequently asked questions we receive is, “How Much Will Liquor Liability Insurance Cost For A Temporary Event?”

A temporary event is considered a single, multi-day event that could be a wedding, cocktail party, catering off-site, or special occasion that involves serving liquor.

In addition to offering establishments an ongoing liquor liability insurance policy, Hospitality Insurance Group offers temporary event liquor liability insurance and general liability for smaller events to give you the peace of mind that comes from knowing that you’re protected from unexpected claims.

Examples of some of the temporary events we’ve written include:

Wine & Chocolate Tasting

One-Day Temporary Event
Boston, Massachusetts
Limits: GL & LIQ 1M/1M/2M
Bartending Service in NH Mono-Line LIQ
New Venture with prior experience
Limits: 1M/1M/2M
Premium: $1,277

 

Bar Mitzvah

Special Event
Washington Crossing, Pennsylvania
Liquor Liability
Limits 1M/1M/2M
Number of Attendees: 70
Total Premium: $416

One of the most frequently asked questions we receive here at Hospitality Insurance Group is, how much does it cost?

Our answer, “it depends.”
For temporary event insurance coverage, Hospitality Insurance Group has five different options with various limits available up to $1Million dollars available.

Our policy amounts range from $125 – $416.

Please note that the rate ranges above shall apply for each day or fraction of a day for which the Insured shall serve or sell alcoholic beverages.

Looking to request coverage for a temporary event?

You can click here to contact one of our preferred partners to request coverage and be sure to include:

• Your name and address, and a description of your business
• A detailed description of the event, including the date, time and duration
• Location of event
• Expected number and age range of attendees
• Whether liquor will be served or sold and whether it’s free of charge or available for purchase
• Types of entertainment to be provided (live band, DJ, dancers, etc.)
• Names of entities requiring coverage as additional insureds
• Estimated liquor sales receipts

Or you can contact your local Independent Insurance Agent and advise them to fill out our  Temporary Event Application for coverage here.

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March 2018 Liquor Liability Insurance Policies

Take a look at some of the liquor liability insurance policies Hospitality Insurance Group wrote in March 2018 including the type of coverage included, insurance discounts applied and a glimpse at the total insurance premium.

Type of Establishment Town, State Coverage Limits Total Sales Liquor to Food Sales Ratio Endorsements/Discounts Total Premium
Restaurant Fayetteville, NC $1M/$1M/$2M $583,663 18% GL A & B + Property Damage
Alcohol Awareness Training
$6,835
Bar/Lounge Pawtucket, RI $1M/$1M/$2M $387,400 84% Prop, GL and LL with GL A&B/PD
Alcohol Awareness Training
Member of Restaurant Association
$17,052
Bar Hyannis, MA $250K/$500K/$500K $530,000 99% Alcohol Awareness Training
Member of Restaurant Association
$12,733
Bar Wakefield, RI $1M/$1M $2M $2,200,000 63% Loss Free Credit
Alcohol Awareness Training
Member of Restaurant Association
$24,189
Restaurant Spencer, MA $1M/$1M/$2M $3,061,000 19% Alcohol Awareness Training
Elite Discount
Loss Free Credit
$2,866

 

 

If you are an Independent Insurance Agent, click here to learn more about working with Hospitality Insurance Group to provide liquor liability insurance to your customers.

If you are a business owner looking for liquor liability insurance coverage, click here to contact one of our preferred Independent Insurance Agents or find answers to some of your frequently asked questions about our insurance coverage here.

 

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Meet Our Marketing Manager, Mark!

In March 2018, we welcomed Mark Trombly to Hospitality Insurance Group as our new Marketing Manager in Southborough, Massachusetts. Get to know Mark in our latest “Meet the Staff” blog post interview.

 

Where do you live?

Charlton, MA

 

Tell us a little bit about your background. 

I have been I the insurance industry for 34 years with the majority of the time in marketing roles.   I have worked for large and small companies writing all lines of business and specialty companies focusing on one line of business.  I have held positions in claims, personal lines underwriting and marketing.

 

Do you hold any industry certifications? 

CPCU, CIC, AIS and I am past president of the Central MA CPCU Chapter

 

Since we’re in the hospitality business, what is your favorite drink of choice to order when out with friends? (cocktail, beer, wine, etc.)

Vodka & tonic

 

What inspired you to start in this industry?

Finishing up college I had an interest in the banking and insurance fields.  An opportunity came up in insurance first and that’s how I got started.

 

What is your favorite restaurant in your area? 

Chuck’s Steakhouse or Coney Island Hotdogs

 

What do you enjoy doing most in your spare time?

Skiing, golfing, hiking and travel

 

If you could go to any Boston sporting event, what would it be? (Boston Bruins, Red Sox, Patriots, Celtics) 

Boston Bruins

 

Tell us something that makes you unique or something wacky, yet interesting about you?

I’m a meatatarian – never met a vegetable I liked.  My motto is friends don’t let friends eat vegetables.

 

How can people contact you? 

Mark Trombly, CPCU, CIC, AIS
Marketing Manager
Direct Line: 774-512-9266
Toll-Free: 877-366-1140

Fax: 508-836-4940
Cell: 508-847-7258
Email: mtrombly@hmic.com
Hospitality Insurance Group
106 Southville Road
Southborough, MA 01772

www.hospitality-mutual.com

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February 2018 Liquor Liability Insurance Policies

Take a look at some of the liquor liability insurance policies Hospitality Insurance Group wrote in February 2018 including the type of coverage included, insurance discounts applied and a glimpse at the total insurance premium.

Catering
Richmond, MA
Coverage Needed: Liquor Liability
Limits: GL: 1M/1M/2M
Total Sales: $2,500 Adult Attendees
Liquor to Food Sales Ratio: N/A
Endorsements: GL A&B
Discounts Applied:N/A
Total Premium: $2,565

Speakeasy Themed Cocktail Lounge
Concord, NH
Coverage Needed: GL & LL
Limits: GL: LL 1000/1000/2000 GL 1000/2000
Total Sales: $700,000
Liquor to Food Sales Ratio: 57% Liquor
Endorsements: GL A&B
Discounts Applied: NHLRA
Total Premium: $15,512

Night Club
Providence, RI
Coverage Needed: Liquor Liability
Limits: 1M/1M/2M
Total Sales: $250,000
Liquor to Food Sales Ratio: 100%
Endorsements: Property Damage , Optional GL A&B
Discounts Applied: Alcohol Awareness Training
Total Premium: $8,157

If you are an Independent Insurance Agent, click here to learn more about working with Hospitality Insurance Group to provide liquor liability insurance to your customers.

If you are a business owner looking for liquor liability insurance coverage, click here to contact one of our preferred Independent Insurance Agents or find answers to some of your frequently asked questions about our insurance coverage here.

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How To Prevent A Fight From Happening At Your Bar – Advice From Three Massachusetts Restaurant Managers

How To Prevent A Fight From Happening At Your Bar - Advice From Three Massachusetts Restaurant ManagersJust in time for St. Patrick’s Day, one of the busiest days in the bar industry here in Massachusetts. In this month’s blog post three Massachusetts restaurant managers share their advice on how to prevent a fight from happening at your bar.
Damien Fuller, General Manager at SouthSide Tavern Restaurant in Braintree, says, “Usually I would just engage the parties involved and go over to them, calmly, and simply ask “is everything ok?” or “how is everyone doing tonight?”

 

“Using words like “please, thank you, I’m sorry, help put parties at ease.”  Says Keith Gleason, General Manager at Finn McCool’s. He recommends using a calm approach while keeping a safe distance from the aggressor, and to have your doormen around as you try to diffuse the situation, just in case it escalates.  Avoid getting into verbal altercation/sparring despite any insults/threats from aggressive parties. Keith recommends using the involved party’s name if you can, so they believe you when you tell them your only goal is for everyone to get home safe and that you would hate for them to have any issues with police if things get out of hand. “Sometimes mentioning possible consequences snaps them back to reality and distracts them from what set them off before.”

 

Todd Smith, co-owner of Bushwood Cocktail Club recommends keeping the hiring of your security staff internal. “In my opinion, you should never hire a third party as your doorman always use your own employees.  You never know how someone else runs their business, how well they’ve screened their employees. I would also encourage having parties leave via separate exits so there is no arguing or fighting outside the establishment.”

 

Hospitality Insurance Group is an admitted insurance company, located in Southborough, MA, that provides insurance coverage to businesses in the hospitality industry. We offer commercial property, general liability, liquor liability and excess liability insurance coverage to businesses that serve or sell liquor in Massachusetts,  Connecticut, New Hampshire, North Carolina, Pennsylvania, Rhode Island and Vermont.

 

To encourage Hospitality Insurance Group policyholders to provide their employees with security training, Hospitality Insurance Group has approved a rate discount of 50% percent off the cost of the assault-and-battery endorsement for insureds when 100% of management and at least 75% of non-management staff obtain certification in an approved security training program. This discount will not be applied to the minimum earned premium for the policy.

 

  Learn more here or request a quote from one of our preferred Premium Insurance Partners here.
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