coverages offered
Why get club insurance? Consider the following. In February 2003, approximately 100 people died and about another 200 were injured in an accidental Rhode Island dance club fire. It was the fourth-worst nightclub disaster in United States history in terms of fatalities. The blaze came to national attention as news networks replayed footage of the fire over and over. Hundreds of families were affected by the tragedy. The club owners were subsequently fined more than $1 million because they had not carried workers’ compensation insurance (four of their employees died in the fire and resulting stampede). Now how important does having proper insurance sound?
Insurance can be obtained at a reasonable cost from many different providers. The best plans will protect your club against many risks, including the following:
- • Accidental injuries to employees
• Injuries to patrons
• Damage done to sound or lighting equipment
• Damage done to the outer premises
• Forced closure due to circumstances beyond your control (adverse weather, local riots – hope that never happens! – or practically anything else you can think of).
• Assault & Battery
• Liquor Liability
• Property Insurance
Any business where alcohol is being served will want to invest in a good insurance plan. There are all types of insurance to cover these types of establishments. When you mix alcohol with people looking to have a good time you sometimes will get someone who just can't keep it together. Although the person will need to be responsible for their actions a lawsuit against the nightclub or bar that served them is all too common.
Some of the provisions of a night club insurance plan might be the following:
- • Property
- • • • Building, Business Income, Loss of Rents, Personal Property, Inventory
- • • •Food Spoilage or Contamination
- • • •Outdoor Signs, Antennas, Awnings
- • • •Mechanical Breakdown
- • • •Water Backup and Overflow
- • • •Fine Arts
- • • •Employee Dishonesty and Crime Coverage
- • • •*****Property Enhancement
- • • •Expanded Fire Damage Coverage
- • • •Tenants Property Damage
- • • •Garage Keepers Liability for Valet Parking
- • • •Extended Coverage for Newly Acquired Organizations
- • Liquor liability
- • Hired Non Owned Automobile Coverage
- • Assault and battery
- • Umbrella/Excess Liability
- • Optional Coverages
- • • •Automobile
- • • •Boiler & Machinery
- • • •Employee Benefits Liability
- • • •Workers Compensation
- • • •Health Insurance
General & Property Liability
General liability insurance for your nightclub would cover those sums that the insured must legally pay as damages because of a lawsuit or claim involving accidental bodily injury or property damage. This usually includes legal defense costs.
Property and contents coverage will pay for direct physical loss or damage to the building and to such items as chairs, tables, inventory etc. located in the insured's property or premises. Losses are covered at the premises resulting from any covered loss described in the declarations part of your policy.
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Liquor Liability
If your nightclub serves liquor than a liquor liability plan is very important and it will pay for sums which the insured is obligated to pay due to a lawsuit or claim involving bodily injury or property damage on or off the premise resulting from a patron that was served alcohol from your establishment. Royal Palm Agency has General Liability, Liquor Liability and Workers Compensation insurance policies. Don't take chances at your next event. You may only be one mishap away from serious financial and legal consequences if you are not properly insured.
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Assault and Battery
Assault and battery situations come up at nightclubs all too frequently. This is coverage for third party liability claims that arise from assault and battery charges. Bodily Injury and medical costs sustained by a patron during a physical altercation with another patron or a bar employee while at your establishment can become a very costly expense if you are not covered properly. At Royal Palm Agency we understand the importance of covering you properly so that you are not Exposed!
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Business equipment insurance
Business equipment insurance is as important to your business operations as the equipment itself. In an age of technology – telephones, computers and electrical systems – your company is dependent on a variety of machines to communicate with customers and to create, store and sell your products. Nationwide understands that damaged equipment can mean lost income, so we offer broad insurance for equipment breakdowns to keep business running smoothly. For example:
- • A power surge could damage your computer network
- • Your electrical system could short circuit, causing your business to shut down temporarily
- • An employee error might damage your only production machine
Business equipment insurance protects equipment that is vital to your success
Most standard property insurance policies do not provide insurance for equipment breakdown. Equipment breakdown coverage protects against breakdowns caused by power surges, mechanical breakdown, motor burnout, boiler damage and operator error. It can pay for:
- • The cost to repair or replace the damaged equipment
- • Costs associated with the time and labor to repair or replace the equipment
- • Business income losses when a covered breakdown causes a partial or total business interruption
- • Other expenses incurred to limit the loss or speed the restoration
- • The cost to replace the spoiled stock or materials
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Valet Parking
Valet parking service adds value to your restaurant by creating an upscale image, and by increasing patronage and revenue. Restaurants in crowded urban settings where parking is in short supply benefit greatly from valet parking service.
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Crime Insurance
Business fidelity insurance is designed to protect your company from many types of crime. Because crime is a common worry for businesses, we offer business protection to cover your company when employees decide they are entitled to the company’s inventory or a thief robs you of your cash. Working through such losses takes time and money – resources that would be better spent running your business.
Business crime insurance coverage offers business protection and more. We offer coverage for:
- • Employee dishonesty
- • Forgery or alteration
- • Theft of money and securities
- • Burglary or robbery
- • Computer fraud
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EPLI
Employment Practices Liability Insurance (EPLI) typically covers allegations of discrimination, wrongful termination and sexual harassment of employees. A decade ago, when many insurance companies began taking large losses on these types of claims, Employment Practices Liability Insurance became a stand-alone insurance product for businesses.
Employment Practices Liability Insurance also may be bundled with Directors and Officers liability insurance, which protects against claims that allege misconduct by the officers of a company against individuals or groups affected by the directors’ actions.
Employment Practices Liability Insurance Protects Businesses From Common Claims.
EPLI protects companies against claims that past, current and prospective employees of the company bring against the company, its directors and officers, and its other employees. Common employment practices violations include discrimination (based on sex, age, race, religion or other factors); sexual harassment (including “quid pro quo” harassment claims); wrongful termination; and a variety of other employment-related claims that violate employees’ civil rights or their ability to perform their jobs in an acceptable and fair working environment. These types of claims can be extremely expensive to defend against, even if the court finds in favor of the employer.
What is also common about these types of claims is that they frequently consist of one person’s word against another’s. For example, if a candidate for a job feels she was passed over due to age discrimination, but the human resources director who interviewed her says it was because another candidate was more qualified, the responsibility to make a judgment frequently rests with a jury who must decide which person they believe more. This type of case can be risky for a company to face, since many potential jurors may bring their own big-business prejudices to the jury.
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Restaurant Insurance
One area in the restaurant business you do not want to skimp is insurance. Insurance can protect you and your business for a myriad of problems, from broken equipment to liability lawsuits. Depending on where you live, you will need certain types of insurance for your restaurant. You will also need to carry certain types of insurance to satisfy your bank loans and mortgage.
The most common types of restaurant insurance available include:
• Property Insurance- – Protects your property in case of fire or other events. It may not cover natural disasters, such as floods or earthquakes (see below for a policy that does.) If you have any kind of mortgage on your business and/or equipment, then you should carry a property insurance policy.
• General Liability – This is the umbrella policy that protects you in the event someone slips and falls in your restaurant, gets sick after eating there (whether it was your fault or not). This is a must have in today’s sometime sue-happy world.
• Liquor Liability – Most states require that any establishment holding a liquor license carry liquor liability as part of their insurance. It helps protect you if a customer has too much to drink and drives and hurts themselves or someone else.
• Automobile Liability – If you have a company vehicle, this is a good insurance to have. It may be covered in your general liability, but always check with your insurance agent first.
• Workers Compensation – Protects you if an employee is hurt at work. Most states require that all employers carry some type of workers comp.
• Unemployment Insurance – Is for your employees who no longer work for you until they find employment.
• Life Insurance – Depending on your mortgage and financing you may need to carry a hefty life insurance policy to satisfy your lender. It is also a good idea to have life insurance, in case something does happen to you and your family isn’t left with a restaurant they don’t know how to run and bills they can’t pay.
There is insurance for just about any object, action or person out there. Here are some other types of insurance you can purchase for your restaurant. But keep in mind, these extras will cost you as much or more than whatever it is you are insuring.
• Loss of Business Insurance – If you lose sales through a specific cause, this type of policy can recoup some of the income. Keep in mind the premiums and deductible may make you break even, depending on how much you lose.
• Food Contamination Insurance - If you lose power, because of fallen power lines or a storm, and the entire contents of your walk-in and freezer spoil, this policy would pay to replace the food.
• Specific Peril Insurance – This covers many natural disasters that general liability insurance doesn’t. Events like earthquakes, floods or power outages due to either, may be covered under this insurance.
Use Royal Palm Agency to help guide you while you open your restaurant. Our job is to make life easier for you by providing you the coverage you need at the best available price. We are knowledgeable in this area and have access to several markets that specialize in this business only.
Let us review your policy for suggestions to improve your coverage or provide a competitive proposal.
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