Restaurant Insurance 2.0: Addressing the Evolving Needs of Today’s Modern Restaurants

Hungry for success in the restaurant insurance market? If you missed our recent 30-minute webinar, “Restaurant Insurance 2.0: Addressing the Evolving Needs of Today’s Modern Restaurants,” don’t worry. You have the opportunity to gain essential insights into protecting your clients’ restaurants and spice up your sales strategies to boost business growth. Explore global trends reshaping today’s modern restaurant needs and the importance of cyber coverage. Dive in now to unlock the future of restaurant insurance – access the full recording now to enhance your competitive edge.

Get the Restaurant Insurance 2.0 session handouts here:

+ Transcript & FAQ

+ Video Recording

+ Slides

Below are some of the insightful questions from attendees during our session.

General Questions

Q: What are the top 3 insurance concerns that a restaurant owner doesn’t understand and therefore, probably doesn’t get sufficient limits/coverages?
A: 1) Cyber – Many restaurants still do not buy any cyber coverage. 2) Umbrella with Adequate Limits – There is no magic formula to determine adequate limits, but we see even multi-location restaurants that only carry a $1M or $2M umbrella, which is certainly not adequate. 3) Property Values – Many restaurants and brokers have not kept up with inflation regarding the valuations and limits of buildings, improvements & betterments, and contents.

Q: We currently are appointed agents for another Distinguished program. Are we able to access the restaurant program?
A: Yes!

Q: Do we submit accord apps, or can enter on your Portal?
A: You can find our applications and submission instructions by visiting the Distinguished website: Submit Business Page – Distinguished

Q: What Carrier are you using to place the restaurants?
A: Arch Insurance for the Package Program, Beazley for Monoline Cyber and ACE/Chubb for the Monoline Umbrella

Q: What states is this available in?
A: Restaurant Umbrella and Cyber Liability are available in all states. Restaurant package is available in all states except Alaska.

Coverage Details

Q: Does your program have an appetite for the entertainment mentioned in the webinar? That has become a major roadblock for restaurant clients lately.
A: We have an appetite for low-key, background entertainment only.

Q: Do you accept Karaoke business? Is closing at 2am ok? Offer Liquor Liability or EPLI?
A: We do not write restaurants with karaoke or restaurants that close later than 1:00 a.m.

Q: Eligibility for fine dining with higher alcohol revenue due to higher sales price drinks?
A: Yes.

Q: Hired and non-owned, how does Uber Eats etc. affect this line?
A: In our program, we do offer HNOA if the restaurants use third-party delivery services. We do not offer the coverage if there is first-party delivery.

Q: Wind coverage? What are your wind restrictions for GA, FL, AL, MS, LA, and Texas?
A: We do not write any wind coverage in Florida. In the other states, we do not write first tier wind coverage and may also require a wind deductible beyond the first tier.

Q: Can you share more about coverage for Ghost Restaurants and food businesses which utilize shared kitchens?
A: We provide similar coverages for ghost kitchens as we do for other restaurants. The lack of customer foot traffic on-premises at ghost kitchens means that rates are lower than for restaurants with on-premises dining. We do not insure entities that are functioning as the landlord/lessor of a shared kitchen space. We will consider entities that are leasing space and operating a restaurant as a ghost kitchen.

Q: Does the policy have an Assault and Battery Exclusion?
A: No, and we also do not write bars or other establishments that are at a higher risk for an assault or battery claim.

Q: Would you be able to look at a restaurant/banquet house that also has docks?
A: No.

Q: Why do carriers put a limitation on liquor receipts even when it is a high-end restaurant and the bottle of wine costs more than the entre?
A: We do make allowances for fine dining restaurants that have a higher percentage of liquor due to the pricing of wine/cocktails. These are underwritten on a case-by-case basis.

Q: Eligibility for restaurants with Food Trucks?
A: We are not currently able to offer food truck coverage.

Cyber Questions

Q: For Business interruption, 3rd party vendor coverage, is the “vendor” only for data vendors, or can it include “suppliers of meat/fish/vegetables”?
A: Coverage for dependent business interruption loss for Breaches and System Failures is not limited to data vendors. Dependent Business means any entity that is not a part of the Insured Organization but which provides necessary products or services to the Insured Organization pursuant to a written contract.

Q: What part of the forensic expenses are you covering and what is the limit?
A: Limits for Legal, Forensic & Public Relations/Crisis Mgt are up to policy limits. Forensic Expenses means reasonable and necessary expenses incurred by the Insured Organization to investigate the source or cause of a Business Interruption Loss.

Expert Panel

Heidi Strommen, President, Distinguished Primary Hospitality

Heidi has an extensive background in building programs for restaurants and related risks. She’s a Past President of the Target Markets Program Administrators Association and is currently on their Advisory Board. She’s authored numerous articles about insuring restaurant exposures for various industry magazines, including Risk and Insurance, Insurance Journal, Agent and Broker, and Rough Notes.

Haley Cagle, Cyber Liability Product Manager, Distinguished Primary Hospitality

Haley previously worked under a program administrator for Lloyds of London and has been in the professional liability insurance industry as a wholesale surplus line broker and underwriter for 14 years. She specialized in cyber, tech, and miscellaneous E&O and now focuses solely on cyber. She also recently obtained the Cyber Professional Liability Practitioner (CPLP) designation, which she adds to her RPLU and ASLI designations.  

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

‣ Register Your Agency
‣ Learn More
‣ Contact Us

New call-to-action