Retail Food And Beverage Insurance FAQ

• At the minimum, retail food and beverage businesses need general liability insurance.
• If they have employees they will need workers compensation in most states.
• If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
• There are also other specialty coverages and endorsements that might be needed based on their operations.

The package policy of choice in this category is most often the businessowners policy, because of the automatic coverages included and the cost savings when compared to standard package policies. However, some of these businesses are not eligible for that program and must use the commercial package policy (CPP) as a more flexible alternative.

Types Of Retail Food And Beverage Package Policies:

• Businessowners Policy (BOP)
• Commercial Package Policy (CPP)

Business personal property and business income coverages are vital to the continuance of a retail food and beverage operation following a loss. Spoilage coverage is an important option to consider, along with extra expense. Specialty food operations should consider business income from dependent and secondary dependent properties coverage.

Types Of Property Coverages:

• Building
• Business Personal Property
• Personal Property of Others
• Improvements and Betterments

Computer equipment, including cash registers and equipment that regulates temperature, is vital to the continuing and successful operation of most retail food and beverage establishments. The appropriate inland marine coverage forms should be used to insure these and other eligible types of property.

Remember to remove items covered under inland marine forms from business personal property coverage in order to prevent duplicate premium charges.

Types Of Inland Marine Coverages:

• Accounts Receivable Coverage
• Difference in Conditions (DIC) Coverage
• Electronic Data Processing Equipment Coverage
• Fine Arts Coverage
• Goods In Transit
• Scheduled Property Coverage
• Signs Coverage
• Transportation Coverage
• Valuable Papers and Records Coverage

Holdups and robberies are the crime losses that usually come to mind and they are big concerns at most food and beverage operations. However, employee theft of both money and stock may actually represent greater loss exposures in some, if not all, of these businesses.

Types Of Crime Coverages:

• Computer and Funds Transfer Fraud Coverage
• Employee Theft Coverage
• Forgery or Alteration Coverage
• Inside The Premises-Theft of Money and Securities Coverage
• Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
• Money Orders and Counterfeit Money Coverage
• Outside The Premises Coverage

Every food and beverage operation must obtain the appropriate licenses and permits in order to operate. Most municipalities require a surety bond be posted prior to issuing the needed licenses and permits as a guarantee that the business will conduct operations in the prescribed manner.

Types Of Surety Coverages:

• License and Permit Bonds
• Miscellaneous Surety Bonds

Premises liability exposures are high because of heavy foot traffic by the public in both the store and the parking lot. In many states, liquor sales and service in these establishments creates additional liability exposures and concerns.

Types Of Liability Coverages:

• Commercial General Liability (CGL) Coverage
• Employee Benefits Liability Coverage
• Employment-Related Practices Coverage
• Liquor Liability Coverage
• Special Events Liability Coverage

Commercial automobile exposures for these businesses are often limited to hired and non-owned liability. However, the exposure can be greater and more complicated if a business offers delivery service or picks up products using owned vehicles.

Types Of Business Auto Coverages:

• Auto Medical Payments
• Business Auto Coverage
• Collision Coverage
• Comprehensive Coverage
• Hired & Non-owned Auto Coverage (HNOA)
• Uninsured/Underinsured Motorists Coverage

Injuries to employees as a result of attempted or actual holdups are a concern, but other day-to-day activities like lifting, slips and falls can cause serious injuries as well. Workers compensation coverage pays for the injuries and disability from employee accidents and is mandatory in almost every state.

Types Of Workers Comp Coverages:

• Stop-Gap or Employers Liability Coverage
• Workers Compensation and Employers Liability Coverage

Excess or umbrella limits purchased should include and apply to any underlying liquor liability coverage. This is because of the potential for significant losses from the sales or serving of alcoholic beverages.

All underlying exposures, hazards and operations must be evaluated thoroughly and carefully to determine the liability limits needed to adequately protect the financial assets of the insured.

Types Of Excess Liability Coverages:

• Excess Liability Coverage
• Umbrella Coverage

The relative size of a retail food and beverage operation usually determines its exposures but other factors may be involved. Depending on the particular circumstances or issues of a specific risk, one or more of the following coverages may also be needed:

Types Of Specialty Coverages:

• Business Legal Expense Coverage
• Cyber Liability Coverage
• Directors and Officers Liability Coverage
• Environmental Impairment Liability Coverage
• Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
• Identity Theft Insurance Coverage
• Risk Retention Group Liability Coverage
• Solar Energy System Coverage