Serving alcohol is a common practice for restaurants, bars, catering companies, entertainment venues and similar establishments. While providing a wide array of beverage options is important, serving alcohol in particular can create a variety of risks for business owners.
For instance, if a patron of your business becomes intoxicated and injures a third party or causes property damage, you could be held liable for the damages. In order to protect your business from serious financial and reputational losses, it’s important to consider purchasing liquor liability insurance.
What is Liquor Liability?
The term liquor liability refers to an organization’s legal and financial responsibility for the actions of individuals who consume alcohol at their establishment. Under liquor liability laws, a business can be found liable for both the bodily injury and property damage caused by a person they improperly served alcohol to.
What is Liquor Liability Insurance?
Liquor liability insurance is designed to protect any business that sells or serves alcoholic beverages. Specifically, this type of insurance covers damages that result from things like fights, careless behavior or automobile accidents caused by individuals who have consumed alcohol.
Liquor liability is important, as it protects you should your clients or patrons sue your business for damages related to their intoxication—something a general liability policy won’t cover.
Most businesses carry a general liability policy, which covers claims against your business for bodily injury, property damage or personal injury. While these policies often include host liquor liability coverage, they only provide protection related to the incidental service of alcohol. While host liquor liability may protect you if you are simply serving alcohol at a company party, it does not offer the coverage you need if you sell alcohol as part of your business.
What’s more, the majority of states require establishments that serve, sell or assist in the purchase of alcohol to carry liquor liability insurance. As such, it’s important to know what to look for in a policy.
What Should My Policy Account For?
When it comes to protecting your business from any kind of liability, it’s critical that you account for common risks. In order to secure the right level of coverage, keep in mind the following policy enhancements when shopping for liquor liability insurance:
Assault and battery coverage.
When alcohol is involved, fights are a common risk. However, many liquor liability policies exclude coverage for assault and battery. Therefore, it’s important to ensure you account for this protection when building your policy. It should be noted that assault and battery coverage can also be extended to include specific incidents such as sexual assault, stabbings and shootings.
Defense costs.
Legal fees from liquor-related claims can easily exceed tens of thousands of dollars. Be sure that your policy accounts for defense costs outside of the policy limit. Otherwise, legal expenses could quickly exhaust your policy limit, leaving little to no insurance to pay for any damages.
Employees included.
Even if you forbid your employees to drink on the job, there’s a chance that they may disregard your instruction. Look for a policy that will cover your employees as patrons to better protect your business from liquor-related incidents.
Mental damages.
In the event of a lawsuit, claimants may allege they were injured in nonphysical ways. In these instances, patrons could sue you for stress, mental anguish or psychological injury. Ensure that your policy accounts for these types of injuries.
It should be noted that liquor liability insurance won’t cover claims that arise from the sale of alcohol to minors or similar illegal transactions. Be sure your employees are instructed to verify patrons are of legal drinking age.
What Determines Pricing?
The underwriting process for liquor liability insurance can differ depending on the type of business you conduct. In general, the following four factors determine the rating and pricing of coverage:
Type of venue. When examining a business’s risk, underwriters look to identify the primary purpose of a venue. If you own a restaurant, the primary purpose of your venue is to serve food, so you are generally considered to have less risk than a nightclub or tavern.
Location of the venue.
Liquor laws can vary drastically depending on the jurisdiction. Each state has its own scoring system based on the nature of local dram shop laws. Dram shop laws impose certain liability standards on area venues that serve alcohol. Because the strictness of these laws may change from location to location, where you operate your business can have a major impact on how your liquor liability insurance is priced.
Percentage of liquor sales.
As a general rule, the more alcohol sales you make, the higher your premiums will be. This factor tends to have more of an impact on pricing than venue type, as a restaurant that has a high percentage of alcohol sales may be priced similar to a bar.
Individual traits of the risk. There are a number of miscellaneous variables underwriters will take into consideration when pricing out policies, including the following:
- Types of entertainment offered
- Experience level of management
- Formal loss control measures
- Security measures and procedures for dealing with intoxicated patrons
Serve Your Patrons Responsibly
When serving liquor, the best way to protect your business from potential claims is through proper risk management and liquor liability insurance. These policies can be complex, and it’s important to discuss the nature of your operations with a qualified insurance broker. Contact Scurich Insurance today to learn more.
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Contractors, no matter what industry they work in, face environmental risks stemming from operations on a daily basis. For most contractors, a single pollution incident or loss can seriously damage their reputation, operations and even their balance sheet. Making matters worse, pollution incidents can be sudden or occur gradually over time.
While many contractors assume that environmental claims will be covered under their commercial general liability (CGL) policy, the unfortunate reality is that most CGLs contain pollution exclusions that leave contractors uninsured in the event of a pollution incident.
Thankfully, contractors are increasingly turning to contractors pollution liability (CPL) insurance to ensure they have the right coverage in place to remain secure and profitable.
CPL Coverage Basics
CPL policies provide contractor-based insurance for third-party coverage for bodily injury, property damage, defense, and cleanup as a result of sudden and gradual pollution incidents arising from contracting operations performed by or on behalf of the contractor. CPL insurance is intended to provide coverage to all types of contracting operations, including contractors who are involved in building construction and environmental firms that remediate polluted sites.
CPL policies are offered on either a claims-made or occurrence basis. What’s more, CPL policies are nonstandard, meaning each policy is different and can be modified to cover the various needs of the contractor purchasing the policy. Policies can be offered on a project or blanket program basis.
In some instances, CPL policies can also be used to cover losses from civil fines, penalties and punitive damages.
Covered Pollution Incidents
Contractors should keep in mind that CPL insurance policies differ in regard to the types of pollution incidents that are covered. Two important considerations when evaluating CPL insurance policies are:
- Whether or not the policy will respond to gradual releases of pollutants, as opposed to sudden and accidental releases
- The types of substances that are considered “pollutants” under the terms of the policy
Generally, policies that cover both gradual and sudden releases of pollutants provide contractors with a broader scope of coverage. In addition, policies that provide a broad definition of pollutants are considered superior to those that contain a narrow definition. Accordingly, it is important that contractors work with their broker to find a CPL policy that is tailored to their needs.
CGL Pollution Exclusions
A primary reason why contractors obtain a CPL policy is due to the various pollution exclusions contained in most CGL policies. The pollution exclusions found in most CGL policies take one of two forms, either “absolute” or “total.”
CGL policies with an absolute pollution exclusion remove coverage for most pollution events that would occur in the course of an insured’s business operations. However, despite its name, an absolute pollution exclusion may preserve coverage for certain incidental pollution damages, products and completed operations liability, and certain off-premises work.
However, more commonly, CGL policies include a more restrictive “total pollution exclusion.” This type of exclusion effectively removes coverage for any event the insurer characterizes as a pollution incident.
Contractual Requirements
Contractual requirements serve as another motivating factor that lead many contractors to obtain a CPL policy. In many instances, project owners and general contractors will require contractors to obtain pollution insurance that meets certain, predetermined standards.
From this perspective, having a CPL insurance policy in place can serve as an upfront sales tool during the bidding process that enables contractors to qualify for opportunities when such coverage is required.
Finding the Right Policy
Regardless of specialty, all contractors should be mindful of the pollution risks associated with their work. A CPL insurance policy can provide much-needed security in the event of a pollution incident, even in the most unlikely of circumstances.
Let Scurich Insurance work with your organization to find the CPL coverage that is right for you.
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The Problem with Minimum Coverage
Most states require drivers to carry basic liability coverage, which pays for injury and property damages if you are found at fault following an accident. These limits vary by state but can be as low as $10,000 per person or $20,000 per accident.
If you get into an accident, there’s a chance you could be sued. When this happens, minimum liability coverage may not be sufficient to cover the damages, and you could end up paying thousands of dollars out of your own pocket.
What’s more, if you cause an accident and your liability limits are too low to cover the expenses, the other party might go after your assets in court. To protect yourself, it’s important to think critically about how much coverage you need and to secure the proper limits.
How Much Auto Insurance Should I Carry?
While it can be tempting to simply pay the lowest amount possible for auto insurance, doing so can leave you exposed to serious financial risks. In general, it’s recommended that you carry more than the minimum coverage unless you are driving an older car with little value and have no assets to protect.
Did You Know? Insurance is mandatory in order to operate a vehicle in the United States, and every state has specific coverage limits that you must meet. While meeting these minimum limits may be enough to get you on the road, they are often inadequate if you are involved in a serious accident. As such, you may want to consider raising your limits in order to secure the right protection.
The higher you set your coverage limits and the lower you set your deductibles, the less you’ll pay out of pocket after a claim. You will need to determine how much you can comfortably afford when setting your coverage limits and deductibles.
Raising your limits and paying a little more each month will allow you to get the most out of your investment.
Customize Your Policy
When it comes to auto insurance, you have many options. Contact your insurance broker today. They will be able to discuss different ways to customize auto insurance policies, including adjusting collision, comprehensive, medical expenses, uninsured motorist and no-fault coverage. They can also recommend specific policy limits given your situation.
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OSHA’s final rule on electronic reporting requires certain employers to submit data from their injury and illness records electronically so it can be posted on the agency’s website. Because the rule is an extra requirement on top of existing OSHA recordkeeping standards, affected employers need to be ready to comply with the rule before the proposed Dec. 1, 2017, deadline.
Other News and Tips
Preparing for OSHA Inspections
If an unannounced OSHA inspection finds violations at your business, you may have to pay thousands in fines and watch as your reputation plummets. Fortunately, OSHA inspections generally follow an established procedure that you and your staff can prepare for.
When an OSHA compliance officer arrives at your business, it’s important to check his or her credentials and then determine if you’ll give consent to the inspection. Although you can refuse an inspection or give only partial consent, the compliance officer will take note of this and OSHA may take further action.
Once an inspection begins, the goal should be to determine its purpose and set any ground rules. You should also be prepared to provide proof that your business is in compliance with OSHA standards. During the walkaround process, be sure to take notes of what the inspector documents so you can review them later.
OSHA inspections can be stressful, even when your business is in full compliance. Scurich Insurance can provide you with our inspection guide, “Be Prepared for an OSHA Inspection,” and help your business impress OSHA compliance officers.
OSHA Removes Employee Fatalities from Home Page
Although OSHA used to include a URL link on its home page that would direct viewers to a list of employee fatalities, the agency recently moved the link to a separate page on its website.
According to a spokesperson from the Department of Labor, the link was moved in order to increase the accuracy of workplace data, as previous listings included fatalities that were outside OSHA’s jurisdiction. However, OSHA will keep the list of employee fatalities on its website and continue to review data from employers.
Although the electronic reporting rule initially required certain employers to start submitting their required information by July 1, 2017, OSHA’s Injury Tracking Application website wasn’t ready to receive electronic reports in time, and OSHA proposed Dec. 1, 2017, as the new deadline. The rule doesn’t change an employer’s requirements to complete and retain regular injury and illness records, but some employers will now have additional obligations. Here are the requirements for the rule:
- Establishments with 250 or more employees that are required to keep injury and illness records must electronically submit the following forms:
- OSHA Form 300: Log of Work-Related Injuries and Illnesses
- OSHA Form 300A: Summary of Work-Related Injuries and Illnesses
- OSHA Form 301: Injury and Illnesses Incident Report
- Establishments with 20 to 249 employees that work in industries with historically high rates of occupational injuries and illnesses must electronically submit information from OSHA Form 300A.
The final reporting requirements will be phased in over two years. After the initial Dec. 1, 2017, deadline, establishments with 250 or more employees must submit information from OSHA Forms 300, 300A and 301 by July 1, 2018. Beginning in 2019 and every year thereafter, the information must be submitted by March 2.
For more help preparing for this new rule, call us at 831-661-5697 and ask to see our comprehensive Compliance Overview on OSHA’s electronic reporting rule.
New Silica Rule Enforcement Begins
A new OSHA rule on respirable crystalline silica will require employers to limit their employees’ exposure to silica hazards and provide medical exams to monitor highly exposed employees. The rule is scheduled to come into effect on June 23, 2018; however, OSHA began enforcement of the new rule in the construction industry on Sept. 23, 2017.
Under the new rule, employers must reduce the permissible exposure limit (PEL) for respirable silica to 50 micrograms per cubic meter of air (50 µg/m3). The rule also requires employers to take the following steps:
- Establish engineering controls to limit employees’ exposure to the new PEL.
- Provide employees with respirators when engineering controls alone do not provide enough protection.
- Establish a written silica exposure control plan.
- Provide medical exams to employees who are exposed to levels of respirable silica at or above the new PEL for 30 or more days a year.
To see more information on the respirable silica rule, and to see specifics about the rule’s application in the construction industry, visit OSHA’s website.
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The Insurance Research Council reports that an estimated 1 in 7 drivers in the United States are currently uninsured. As a result, many car insurance companies across the nation offer specific coverage in the event that you get into an accident with an uninsured driver, such as uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage.
UM coverage applies if the uninsured driver was at fault in the accident or if you were the victim of a hit-and-run accident. UIM coverage applies if the other driver is at fault and lacks a high enough level of coverage to cover the cost of the accident. This means that if the underinsured driver’s policy limit is reached before the cost is covered, your insurance company would pay the remainder of the costs until your coverage limit is reached.
While UM/UIM coverage can be helpful, often times the level of coverage isn’t enough to cover the costs of the accident. Luckily, several states allow you to “stack” your UM or UIM coverage. Read on to learn the differences between stacked and unstacked UM/UIM coverage.
Unstacked Coverage
If you have unstacked UM/UIM coverage, your level of coverage is the limit on your policy. For instance, if you have a set limit of $20,000, that is the maximum amount of coverage you will receive after an accident with an uninsured or underinsured driver. Unstacked coverage is more common than stacked coverage, seeing as it is your only option if you insure just one car.
Stacked Coverage
If you insure multiple vehicles and your state allows stacking, you are permitted to increase your level of UM/UIM coverage. You can utilize stacked coverage within one policy, or across policies.
Stacking your coverage within one policy means you are combining your coverage limits for multiple vehicles on a singular policy. For example, if you own two cars on one insurance policy and your UM/UIM limit is $20,000, you can combine your coverage limits for a total of $40,000.
Using stacked coverage across policies means you are combining your coverage limits between separate policies for a singular claim. For example, if you own two vehicles, each with separate policies and your UM/UIM limit is $25,000, you could file a claim using both policies, therefore using up to $50,000.
The Advantages and Disadvantages
There are both benefits and drawbacks to utilizing stacked UM/UIM coverage. Stacking can potentially raise the amount of coverage you can use in case of an accident with an uninsured or underinsured driver, and lets you increase your UM/UIM limits without increasing your liability coverage.
However, if you have stacked coverage, you may have higher rates, seeing as car insurance companies have to offset the risk of costly reimbursement.
In addition, while some states lack laws for stacked coverage, some states either forbid it or only allow it in specific circumstances. Aside from state laws, some car insurance companies have certain policies that disallow stacked coverage. Be sure to contact your car insurance company to discuss your options with stacked UM/UIM coverage.
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Hurricanes, fires and other disasters can cause widespread devastation that threatens the safety of your family and home. But once a disaster passes, you aren’t necessarily out of danger. If your home is damaged, it may not offer sufficient protection for your family. Plus, assessing damage and the rebuilding process itself can be costly, even if your insurance policy helps to pay the bills.
Returning Home
Before you can rebuild or repair your home, you’ll have to complete detailed inspections to see the extent of the damage. However, you should also keep your immediate safety in mind at all times. Even if you’re eager to return home, there could be a number of hazards present after a disaster that aren’t easily visible.
Here are some tips for when you re-enter your home:
- Don’t return to your neighborhood until it’s declared safe by local officials.
- Inspect the outside of your home for cracks in the foundation and sagging in the roof.
- Don’t enter your home if there’s a hazard present, such as damaged power lines, floodwater that’s above the basement or the smell of natural gas.
- Walk through every room of your home with a friend or family member, and take note of any noticeable damage or lost property.
- Don’t drink tap water until it’s been declared safe by local authorities.
- Be aware that wildlife may have taken refuge in your home, especially after a flood. Use a shovel or other long tool to rummage through anything you can’t see, and never approach a wild animal directly.
- Never force open a door that appears to be jammed. It’s possible that damage to your home has forced a door to support some of the building’s structure.
- Refrain from using wired electronics until you know the electrical systems are working properly.
Cleaning and Repairs
Once you’ve determined that your home is safe, you many want to start cleaning or performing small repairs yourself. However, the precautions you take during the recovery process can change depending on the type of disaster that affected your area. Use the following best practices to identify potential hazards in your home and prepare yourself for the cleaning and rebuilding processes.
General Best Practices
- Be aware of hazards that may be unique to your home. For example, older homes may contain lead paint, asbestos or other dangerous substances that can become exposed after a disaster.
- Wear appropriate protective equipment. You should always wear gloves and goggles when cleaning chemical spills or working with household cleaners.
- Read the manufacturers’ instructions on all cleaning products and devices before using them.
- Never mix chemicals together, either when disposing of them or using them to clean.
- Be aware of carbon monoxide hazards. Because the gas is difficult to detect and your home’s carbon monoxide detectors may not be working properly, it can be hard to detect a dangerous buildup of carbon monoxide. Never use fuel-burning devices inside your home, including portable generators that run on gasoline.
- Remove any standing water from your home as quickly as possible. Standing water can serve as a breeding ground for microorganisms and disease-carrying insects.
- Check the outside of your home to see if wind or debris has damaged the roof, windows or siding. If the damage appears to be severe, consult a professional about making repairs.
- Properly dispose of all waste materials and garbage, and never burn them.
- Take pictures of your home before and after it’s repaired. These pictures may help when making insurance claims.
- Make a record of any important documents that were damaged or destroyed, such as passports, birth certificates, Social Security numbers and insurance policies.
- Keep the receipts for any purchases you make while cleaning or rebuilding.
- Contact us at 831-661-5697 for help getting in touch with certified professionals and reviewing your homeowners policy.
Floods
- Wear an N-95 respirator if mold is present. If standing water has been in your home for at least two days, it’s likely that mold has begun to grow.
- Call a professional to help you clean if there’s a large amount of mold present.
- Remove any standing water as quickly as possible. However, if your basement is flooded, you should only pump out about one-third of the water a day. If any more is pumped out, it could cause the walls to collapse or the floor to buckle.
- Dispose of any food and containers that came into contact with floodwater, even if they appear to be airtight.
- Clean and dry all hard surfaces in your home. If anything can’t be cleaned and dried, it should be thrown away.
Fires
- Enter your home only after the fire department has said that it’s safe. Fires can cause severe damage to a building’s walls and floors, and they may not be structurally sound.
- To protect against serious health risks, avoid contact with soot and dirty water left over after a fire.
- Wear a mask while cleaning to prevent the inhalation of ash, soot and other residue.
- Check to see if your utilities are in working order. The fire department usually turns off utilities when fighting a fire and will know if they’re safe to use. Never try to turn your utilities back on by yourself.
- Use cleaning products that contain tri-sodium phosphate to help reduce the odor of smoke. Be sure to read the manufacturer’s instructions before you use one of these products.
- Use a mild soap and warm water to remove stains from soot and smoke from hard surfaces. Make sure to rinse and completely dry all surfaces shortly afterward.
- Talk to a professional about replacing drywall or insulation that’s been soaked by water from fire hoses.
Working with Contractors
Hiring a contractor to repair your home is a good way to make sure the job is done professionally. Unfortunately, disasters also attract scam artists who prey upon those affected by a disaster, and you need to remain skeptical when using contractors. Here are some best practices for working with a contractor:
- Only use contractors who have a good referral from Scurich Insurance, family members or friends.
- Check to see if complaints have been lodged against a contractor you’re considering by visiting www.usa.gov/state-consumer.
- Be wary of contractors who encourage you to spend too much, offer “special deals” or ask for your credit card number before you’ve signed a contract.
- Ask to see copies of contractors’ general liability and workers’ compensation insurance policies before you work with them.
- Get a written price estimate that includes any spoken promises made by a contractor.
- Take your time to review a contract before you sign it, and be sure to ask for explanations about any price variations you notice. It’s also a good idea to get an attorney to review a contract before it’s signed.
- Never agree to pay a contractor upfront. A deposit of one-third the total price is standard.
- Only pay contractors with a check or credit card, and pay the final amount only after the work is finished and has passed your review. Also, keep in mind that paying with a credit card may offer protection from your bank and the credit card company if the contractor makes an unauthorized purchase.
Recovery Resources
Recovering from a disaster of any type is an extremely stressful experience, and one where your family’s safety and financial future may be in doubt. Here are some resources you may be able to use to help provide for your family and rebuild your home:
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