WA Woman Convicted of Theft / Insurance Fraud

Washington State Insurance Update: Spokane-area woman convicted of theft in insurance...: A Liberty Lake, Wash. woman pleaded guilty today in Spokane County Superior Court to theft for filing thousands of dollars in false insurance claims...

Costco Business Partner of the Month

Each quarter, I am displayed up at the Costco Business Center in Lynnwood, WA for an entire month. This relationship has been mutually beneficial for myself, Costco, and the restaurant owners that shop there.  Kind of a lucky draw that I ended up getting one of the Expo months this time around; seeing that it is definitely one of their busier times.



It's time for the Expo at Costco Business.
Come see me featured through the month of May
and pick up some information!

Click here for the Lynnwood Costco Business Center





WA Insurance Update: Insurance Company Turned Down Your Claim? We May Be Able To Help...

This is an excellent article written by the WA State Office of the Insurance Commissioner. Mike Kreidler has proven to be a fair commissioner and has fought hard for both sides.

Washington State Insurance Update: Insurance company turned down your claim? We may b...: Often when consumers call us with insurance problems, we suggest that they file a complaint with our office. And it's not uncommon for people to say something like "Why should I bother? I already called the insurance company, and they gave me their answer"... Click on the link to see how and why this can help!

Bottle Over The Head Insurance Claim

This is an excellent story and learning experience for any establishment that sells alcohol:

I had a call from a good client this past Friday, the day prior to the big celebration of Cinco de Mayo.  Apparently there was an altercation in which one person was struck over the head with a beer bottle; this happens quite often when you mix alcohol with testosterone in a crowded environment.  He wanted to know his options on accommodating the individual who was injured.  Luckily, the injuries were minor and we had ample coverage for Assault & Battery on his policy (this would NOT be covered under your typical General Liability, in fact, it is excluded in most cases).  We went over the pros and cons of filing a claim, the deductible, how many days the victim had missed from work, etc.  This is an example of how well your agent performs risk management.  They need to weigh the options with you of paying for this out of pocket (inside funds) or using the insurance (outside funds).  In this case, the insured and myself decided that using inside funds would be the proper choice. 

There were quite a few factors that went into this decision.  1) The total medical bills amounted to just over $1,700 plus an additional $200 for lost wages, totaling $1,900.  2) His deductible for this type of claim was $500 - so the total payout from insurance would be $1,400...or would it?  I will explain that last part in a second.  3) We always weigh out our odds to make sure that we don't continually post small claims; this can be an administrative nightmare for the carriers and could likely raise premiums, which will add up to more than the initial claim itself over the years.

Now to explain that last part about the total payout from the carrier.  You see, there is this action called subrogation that companies use to get indemnified (paid back) for any losses that another party may be liable for.  In this case, the victims portion of the medical bills amounted to $1,700.  Now, I think it's safe to assume that the 'actual' cost for everything was much more than that.  If we chose to file a claim for what seems to be a small amount, the individuals medical insurer would most definitely come back to our client and demand to be indemnified for the TOTAL cost - which could easily be a 5 figure amount...not including the administrative costs associated with the process.  You see, there is a lot more to consider when filing a claim; which is why your agent must understand the needs of your specific industry and how the processes work.

General Liability Insurance - What You Need

Comprehensive General Liability coverage insures a business against accidents and injury that might happen on its premises, as well as exposures related to its products. It will protect you from payments for bodily injury or property damage to a third party, for medical expenses accruing to the underlying incident, for the cost of defending lawsuits including investigations and settlements, and for any bonds or judgments required during an appeal procedure.


No matter how diligently you remove all possible hazards from your business, you could be sued successfully for accidents resulting from simply the carelessness of a customer. General liability insurance is your last line of defense against devastating claims for things over which you may have little or no control.

Amount of Insurance Needed:

How much liability coverage do you need? Generally, experts say, $2 million to $3 million of liability insurance should be plenty. The good news is that liability insurance isn’t priced on a dollar-for-dollar basis, so twice the coverage shouldn't be twice the price. Review the exposures with you agent and have them coordinate with the carrier to implement a risk management program. There are agencies out there that do not actively practice this, in which case, contact me and I will be more than happy to get involved.

The price you pay for coverage depends on the size of your business (measured either by square footage, gross sales or by payroll) and the specific risks involved.  For a restaurant, the food and alcohol sales are separated to generate two rating tiers.  Generally, the higher your alcohol sales and greater the percentage to food, the higher your premium.

Common Exclusions:

One item of note with general liability insurance is that it tends to have a lot of exclusions. Be sure you understand exactly what your policy does and doesn't cover.  Always question your agent or broker about specific scenarios that are a concern for your specific needs.  In a lot of cases, you will hear "it depends"; in which case you need to have your agent run a claims scenario by the underwriter and get the response in writing - like a forwarded email perhaps.  It may seem a little silly at first, but trust me, this is your way of living and you must protect yourself from every angle.

You may want to purchase additional liability policies to cover specific concerns. For example, companies with a board of directors may want to consider “Directors and Officers” liability” (D&O). This type of insurance protects top executives against personal financial responsibility due to actions taken by the company.

Another excellent coverage to consider is Employment Practices Liability (EPL).  This insurance will protect you against any 'personal' suits that may arise.  For instance, sexual harassment, discrimination, defamation, wrongful termination, failure to promote and many more.  In my experience, I have found USLI as well as Philadelphia Insurance to be among the top carriers for EPL.  USLI tends to be a good fit for most businesses whereas Philadelphia can be an invaluable source for bars and restaurants.

A Sample Security Plan for Nightclubs & Bars

1. Type of Entertainment To Be Offered.

Describe the type of entertainment offered by your establishment. If the band/musicians are not employed by your establishment, ask for a Certificate of Insurance.

2. Number/Utilization of Security Personnel.

For live music events, one in-house security person for each 50 patrons shall be on duty. All security personnel shall be attired in a manner to readily identify them as such. From the time a live music event ends and for 30 minutes thereafter, one-half of all security personnel shall be stationed outside the premises to assist and encourage patrons to leave safely. For large national acts, at least one uniformed law enforcement officer with full police power shall be employed until 30 minutes following the end of the performance. The officer shall be assigned outside as patrons depart.

For live events, pre-sale and day-of-sale ticket sales shall not exceed capacity.

Security staff shall regularly patrol both the women's and men's bathroom facilities. Handheld counters shall be used by staff at the entrance at all times when open.

3. Control & Clearance of Parking Lot.

Video cameras will be mounted to cover the entrance, exits and entire premises. Tapes will be made available upon request by the local Police Department. Security staff shall regularly patrol the immediate exterior of the building at least once every half-hour, doing so on a random basis.

Licensee shall conspicuously post in its parking lot area the following signage: "No Trespassing/Loitering. Your local ordinance that makes it unlawful for any person to enter or remain on such premises. Any violator will be subject to a penalty of no less than $50 nor more than $300 plus costs. The local police officers are authorized to arrest any person violating this provision without any further additional warning or notice to you. If you are not a patron or not here on official business with the owner or the owner's agent, or you are a patron, but you are loitering in the parking area, leave the parking area immediately."

4. Unruly Patrons.

Licensee will familiarize all security staff with provisions of the local ordinance for unruly patron ordinance. When a patron acts in a manner that is violent, abusive, indecent, profane, boisterous, or otherwise disorderly, licensee will immediately contact the police and request that the police invoke the provisions of the ordinance.

5. Patrons Who Are Intoxicated.

Licensee, its agents, and employees may not sell, dispense, or give away alcohol to any person who is under the influence of alcoholic beverage as defined in the local ordinance, nor shall such a person be permitted on the premises. When a customer has been "cut off", the server will notify the other employees. Management will support the server's decision to terminate service to any customer. If a customer is too impaired to drive safely, licensee will try to persuade the customer not to drive, and arrange a safe ride. If the customer refuses, management will notify the location Police Department with a description of the person and the license plate number of the vehicle, if possible.

6. Patrons Presenting False ID's.

All identification cards used to prove age must be valid (i.e., may not be expired), and must be government-issued. If the identification card is expired or appears at all questionable to the employee, the employee shall request a second for of identification. The employee shall make sure that the individual purchasing the

liquor resembles the identification card. All employees are encouraged to ask purchasers questions relating to their identification in order to verify the information. If the employee checking an ID has a strong suspicion that an ID is false, altered, or belongs to someone other than the person presenting the ID,he/she shall confiscate the ID and turn it over to management, to be presented to the police.

7. Control/Supervision of Patrons Under 21 (Restaurant Applications).

Licensee will request proof of age from any customer who appears to be 30 years of age or younger, and will refuse service to any customer who cannot produce adequate ID. When selling pitchers, ID's will be requested for each person receiving a glass. Separate types of glassware will be used to distinguish alcohol drinks from non-alcohol drinks.

8. Circumstances Under Which The Police Will Be Called.

The police will be called, in a timely manner, anytime management or staff has information to believe a crime has been or is about to be committed and/or whenever a threat of or act of violence occurs on the premises or off premises in areas that would be considered in view or earshot of the establishment.

9. Handling of Physical Disturbances, Including Fights.

Security or management will ask anyone who is fighting to leave. If necessary, security or management will call the local law enforcement agency for assistance. Licensee will permanently refuse admittance to any chronic problem encounter.

10. Names and Dates of Birth Of All Employees In A Management Capacity.

Provide a listing of all names and dates of birth of all management employees.

Note: Be sure to have a place for your employees to sign off that they have read and understand the procedures designated in the security plan.

8 Core Beliefs of Extraordinary Bosses - The best managers have a fundamentally different understanding of workplace, company, and team dynamics. See what they get right.

I took this link from inc.com and found it to be a very good and accurate read.
Management Secrets: Core Beliefs of Great Bosses

2012 NW Foodservice Show - Seattle

I have to say, the Foodservice show this year was a lot of fun! I went to scope out the best area for a booth in the years to come; to see which areas drove the most traffic and which areas were too congested to engage in meaningful discussion. It seems as though the hot ticket to get people to your booth this year was to offer free frozen yogurt - I was guilty of a sample, even from another insurance booth :) They knew who I was, so I didn't fee bad!

If you run your own restaurant or bar, you definitely owe yourself a trip to the show. Just don't wait too long and miss the free online registration! I missed it by ONE day and ended up paying the $25 - which isn't bad, but still...free would have been much better :)

Looking forward to having a booth when it comes back to Seattle in 2014. Can't decide whether or not we should do Portland; not sure it would bear much fruit for us down there.