Restaurant Risk

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Coverage issues Property and time element Property and time concerns span a wide range of various exposures. The following is a sample of these coverage concerns as they relate to restaurants. Building ownership Kitchen appliances Functional replacement cost Building Personal property other than stock Outdoor property Tables, chairs, umbrellas Does insured own the building? Improvements and betterments Improvements v. trade fixtures Lease language Who owns? Property of others Artwork Personal effects Property off premises Transit Removal of interior glass limitation Debris removal Retail sales of package goods Brand & label Wine and liquor Other retail goods Gift certificates Spoilage Food contamination Product recall Service interruption Direct/indirect Category of services Pollutant clean up and removal Sewer backup Recharge of fire extinguishing equipment Vacancy Seasonal operations Ordinance or law Zoning ADA compliance Outdoor signs Outdoor trees, shrubs, plants Glass: lettering and ornamentation Proof of loss expenses Commercial property floater Contract penalty Expanded premises definition Business income v. extra expense Business income waiting period Extended business income Dependent property Ordinance or law: increased period of restoration Lease cancellation: loss of undamaged improvements and betterments Money, credit cards, and forgery Coverage issues surrounding money include: Money & securities Burglary, robbery, fire, flood On premises (e.g., drop safe) Off premises Till Armored car pick up Forgery and alteration Outgoing only Money order & counterfeit paper currency Does not include credit card slips or cashier's checks False pretense Fraudulent credit cards Denial of proper authorization (e.g., owner of card denies charge) Equipment breakdown (boiler and machinery) When you think of restaurants, you think of equipment. The consequences of equipment malfunction in a restaurant can be much more substantial than in other occupations. A malfunctioning refrigerator (and the subsequent spoiling of food) is no laughing matter. Some issue to bear in mind for restaurant equipment coverage include: New generation of equipment for periodic replacement Extra expenses for upkeep, etc. Extended business income Hazardous substances associated with equipment Service interruption Spoilage Ammonia contamination CFC refrigerants Computer equipment Liability coverage issues The following are examples of liability coverage issues: Slip and fall Food poisoning. Mold exclusions v. microbial matter exclusions Aggregate limit per location Additional insured endorsements Grantor of franchise Leased premises Leased equipment Employee benefit liability Fiduciary liability Business auto Hired auto Non-owned auto

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.