Wise restaurant and bar operators protect themselves and other stakeholders in the establishment by insuring buildings, contents and other property with limits sufficient to rebuild or replace damaged property. But what happens while that property is being replaced? Property damage can often be extensive, even total. Such loss can certainly shut down or greatly reduce business operations for a time. Would it be just a few weeks or would it be several months or more? How are lost profits and other ongoing expenses replaced during a shutdown?
Such questions highlight the importance of Business Income and Extra Expense for restaurants.
Computers can be damaged or a complete loss. Paper and other records can be totally destroyed. Building rehabilitation and, in a worst-case scenario, full reconstruction take time - sometimes half a year or more, even if the original premises did not take that long to build. Don't forget to factor in the time to even get all the plans and permits ready.
How long would it take you to get your operation back up and running even under the best of circumstances and with plenty of funds set aside to cover all unforeseen expenses? Such unexpected interruption can cut deep into cash flow and savings.
Natural disasters (all too common) and terrorist events have proven to severely interrupt business income and personal earnings of millions of people. Sad as it is to even recall, there were thousands of restaurants and bars at and near ground zero in New York on that fateful day.
And in New Orleans when Hurricane Katrina hit, just think about all the various eating and drinking establishments that literally went under. Think of the people who owned the enterprises. Think of those who had to make the tough economic decisions to shutdown to never reopen again, anywhere. Did they all have flood insurance? Well, did they all have all-important Business Income Insurance?
Many additional eateries, pubs, bars, nightclubs ... faced surprise income interruptions during the California wildfires. These things (flood, fires, attacks, etc.) happen, and highly intelligent businesses make sure of their coverage adequacy and limits by consulting qualified insurance brokers and risk managers.
You can be sure that the largest and best run chains carry Business Income. Of course they can help spread their losses across other locations not directly hit by a disaster, large or small -- all the more reason for the smaller chains and single-location establishments to have full coverage.
And as we've seen, it doesn't matter which state you're in, disasters strike and accidents happen. Those smart enough to prepare by obtaining solid insurance coverage are able to budget their expenses and to position their business or businesses to ride out a period of little or no income to cover salaries and all other continuing expenses. They are able to continue paying bills and supporting their valuable and highly skilled and trained employees.
Because Business Income and Extra Expense can take on a number of formats, bar and restaurant owners should take great care when selecting limits, choosing coinsurance percentages, including/excluding payroll of non-management employees, and maximum periods during which coverage applies.
© 2009 Hill & Usher, LLC. All Rights Reserved
Monday, August 3, 2009
Monday, November 3, 2008
How Safe Is Your Nightclub or Bar? What Safety Measures Have You Taken To Improve Your Overall Fire Safety?
Here's Your To-Do Agenda For The Top 10 Safety List!
1. Install a sprinkler system and a 24-hour monitored fire alarm system in case of a fire. The deadly fire at The Station Nightclub in Warwick, Rhode Island killed at least 97 and injured 187 customers. Make sure you have the necessary number of fire extinguishers based upon the size of your venue. Also, consider having the music automatically disabled when the fire alarm goes off so patrons can hear the alarm and react quickly.
2. Display well-lit and visible EXIT signs with diagrams showing patrons where all the EXIT locations are - both MAIN and ALTERNATE EXITS. It's a fact that in an emergency, most people will exit out a building the same way they entered. Be sure to have exits clearly marked.
3. Make sure your club is not ignoring, violating, and allowing over-crowding and Exceeding Capacity Limits. This is a severe Fire Code Violation and can cause your club to be hit with a hefty fine.
4. Make sure your club has a solid EXIT PLAN and include Emergency Lighting to illuminate the way for people to get out of your venue. Ensure that all exit doors are accessible and are not blocked or locked in case of an emergency. This is another severe Fire Code Violation. All exit doors should be left unlocked during business hours. Do your exit doors open out or in? Check your fire codes.
5. Have at least one employee or manager on-site who is trained in Crowd Control Management and have a well-thought out Emergency Evacuation Plan. Include a Public Address (PA) System for evacuation orders. Chaos or a stampede can occur from a fire, shooting, or pepper spray.
6. Post signs that "Mace or Pepper Spray" is not allowed in your venue. When pepper spray was used to break up a fight at E2 nightclub in Chicago, it caused chaos and a stampede ensued causing a door to become jammed shut. At least 21 people were killed and 57 injured in the stampede. Ensure your employees know the proper usage of these sprays.
7. If your club is in a high crime area, install metal detectors to ensure knives and/or firearms are not brought into your venue. For instance, over the past few years the City of Seattle has been plagued with hundreds of serious assaults and weapon incidents with patrons bringing guns and knives inside the clubs. Metal detectors would catch most of these weapons before they enter your nightclub.
8. Be proactive and conduct regular safety inspections throughout your venue, recognizing and fixing any and all Fire Code Violations before a disaster occurs. Perform monthly fire drills with your employees so they know how to respond to an emergency.
9. Make sure your employees and especially your security personnel are well-trained in all areas of safety prevention. They are your front-line source to direct patrons out of your venue in case of an emergency or disturbance.
10. Make your nightclub/bar a place where your customers feel safe. Ensure you have taken responsibility for making sure your premises and equipment meet all fire safety regulations and other standards on a continuous basis.
1. Install a sprinkler system and a 24-hour monitored fire alarm system in case of a fire. The deadly fire at The Station Nightclub in Warwick, Rhode Island killed at least 97 and injured 187 customers. Make sure you have the necessary number of fire extinguishers based upon the size of your venue. Also, consider having the music automatically disabled when the fire alarm goes off so patrons can hear the alarm and react quickly.
2. Display well-lit and visible EXIT signs with diagrams showing patrons where all the EXIT locations are - both MAIN and ALTERNATE EXITS. It's a fact that in an emergency, most people will exit out a building the same way they entered. Be sure to have exits clearly marked.
3. Make sure your club is not ignoring, violating, and allowing over-crowding and Exceeding Capacity Limits. This is a severe Fire Code Violation and can cause your club to be hit with a hefty fine.
4. Make sure your club has a solid EXIT PLAN and include Emergency Lighting to illuminate the way for people to get out of your venue. Ensure that all exit doors are accessible and are not blocked or locked in case of an emergency. This is another severe Fire Code Violation. All exit doors should be left unlocked during business hours. Do your exit doors open out or in? Check your fire codes.
5. Have at least one employee or manager on-site who is trained in Crowd Control Management and have a well-thought out Emergency Evacuation Plan. Include a Public Address (PA) System for evacuation orders. Chaos or a stampede can occur from a fire, shooting, or pepper spray.
6. Post signs that "Mace or Pepper Spray" is not allowed in your venue. When pepper spray was used to break up a fight at E2 nightclub in Chicago, it caused chaos and a stampede ensued causing a door to become jammed shut. At least 21 people were killed and 57 injured in the stampede. Ensure your employees know the proper usage of these sprays.
7. If your club is in a high crime area, install metal detectors to ensure knives and/or firearms are not brought into your venue. For instance, over the past few years the City of Seattle has been plagued with hundreds of serious assaults and weapon incidents with patrons bringing guns and knives inside the clubs. Metal detectors would catch most of these weapons before they enter your nightclub.
8. Be proactive and conduct regular safety inspections throughout your venue, recognizing and fixing any and all Fire Code Violations before a disaster occurs. Perform monthly fire drills with your employees so they know how to respond to an emergency.
9. Make sure your employees and especially your security personnel are well-trained in all areas of safety prevention. They are your front-line source to direct patrons out of your venue in case of an emergency or disturbance.
10. Make your nightclub/bar a place where your customers feel safe. Ensure you have taken responsibility for making sure your premises and equipment meet all fire safety regulations and other standards on a continuous basis.
Thursday, October 30, 2008
If You Serve Alcohol, Save Up To 20% On Your Insurance By Doing This:
1. Having a Formal Alcohol Certified Training Program:
Have each employee receive a certificate for completion of alcohol training and awareness.
2. Having a Formal Policy Outlined For The Following:
3. Building Security - Do you have security cameras? What's their visibility, are they taped on discs, hard drive or video tapes, etc?
4. Security Personnel - Do you use employees or have a hired service? Do you have a formal security policy established regarding authority and use of reasonable force?
Completing the above will make your business a better risk and help to keep your risk premiums lower.
Have each employee receive a certificate for completion of alcohol training and awareness.
2. Having a Formal Policy Outlined For The Following:
- Selling or serving beverage alcohol to those who appear intoxicated
- Age Identification
- Fight disturbance and/or fight control if a disturbance breaks out
- Designated driver program
- Setting up local taxi service or providing rides for intoxicated patrons
- Completing incident reports when an incident happens - fight/refusal of service
- Having coffee and food always available
3. Building Security - Do you have security cameras? What's their visibility, are they taped on discs, hard drive or video tapes, etc?
4. Security Personnel - Do you use employees or have a hired service? Do you have a formal security policy established regarding authority and use of reasonable force?
Completing the above will make your business a better risk and help to keep your risk premiums lower.
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