Restaurants
A restaurant has General Liability. A customer gets sick from food served there. What coverage should you hope is included?
Products / Completed Operations — Foodborne illness allegations can arise from the restaurant’s product, so the GL needs the right products/completed-operations protection and no problematic food-related exclusions.
A contractor says, “Everyone who works for me is a 1099, so workers’ comp isn’t my problem.” What’s wrong with that statement?
1099 does not automatically mean independent contractor — Worker status depends on the actual relationship and applicable law, not simply the tax form. Uninsured subs can also create audit and claim headaches.
A rental property is vacant during a renovation. After 60 days, a fire occurs. Why might the owner be surprised by the claim?
Vacancy can reduce or eliminate coverage — Property policies can restrict certain losses after a building has been vacant for a specified period. Renovation and vacancy need to be disclosed and insured correctly.
A volunteer is accused of making a decision that financially harms the organization. General Liability covers it… right?
Not necessarily—think D&O — General Liability focuses largely on bodily injury and property damage. Directors & Officers coverage addresses many allegations involving management decisions and governance.
A business owner lists a van as “service use,” but it actually makes daily deliveries. Why does that matter?
Incorrect use/classification can create a coverage problem — Commercial auto rating and underwriting depend on how the vehicle is actually used. Incorrect radius, use, drivers or classification can create serious issues.
A restaurant loses power for two days. The building is fine—but thousands of dollars of refrigerated food spoils. What gap are we looking for?
Equipment Breakdown / Spoilage — A standard property form may not respond as expected. Equipment breakdown and spoilage can be critical when refrigeration or utility-related failures ruin stock.
A plumber installs a fitting. Six months later it fails and floods the customer’s building. Which GL coverage matters after the job is finished?
Completed Operations — The injury or damage may happen long after the contractor leaves. Completed-operations coverage is a major reason contractors need properly structured liability insurance.
A landlord insures the building for $300,000 because that is what they paid for it. Replacement cost is $700,000. What problem could show up at claim time?
Underinsurance / Coinsurance Penalty — Market value, loan balance and replacement cost are different numbers. Insuring to the wrong value can create a painful settlement even on a partial loss.
An employee alleges wrongful termination and discrimination. Which policy is designed for this type of allegation?
Employment Practices Liability (EPLI) — EPLI can address claims such as discrimination, harassment, retaliation and wrongful termination. These allegations can be expensive even when the organization did nothing wrong.
An employee regularly drives a company vehicle but was never disclosed to the carrier. What is the gap?
Unlisted / undisclosed driver exposure — Driver eligibility and disclosure matter. A bad driving record—or a driver the carrier would not accept—can turn into a major underwriting and claim issue.
A bartender serves an intoxicated patron who later causes a serious crash. What coverage becomes the star of this very bad night?
Liquor Liability — General Liability is not a substitute for liquor liability when a business is in the business of selling or serving alcohol.
A contractor’s employee drives his own pickup to pick up materials for the business and causes an accident. The business owns no vehicles. What coverage may be missing?
Hired & Non-Owned Auto Liability — No company-owned vehicles does not mean no business auto exposure. Employee-owned or rented vehicles used for business can create liability for the company.
A fire destroys an older rental. Rebuilding requires code upgrades that were not part of the original structure. What coverage pays for that added cost?
Ordinance or Law — Demolition, increased construction costs and undamaged portions of a building can create major expenses when current codes apply after a covered loss.
A nonprofit treasurer clicks a fake email and sends $18,000 to a fraudster. Which coverage may matter most?
Cyber / Social Engineering or Crime Coverage — The exact coverage depends on the policy structure. Funds-transfer fraud and social engineering often require specific cyber or crime provisions, not just “we have cyber.”
A $70,000 work truck is totaled, but the policy only pays Actual Cash Value. The loan balance is higher. What coverage could help?
Loan/Lease Gap or stated-value structure, when available — Commercial vehicles can depreciate quickly. Owners should understand the valuation basis and whether gap or another valuation option is available.