Restaurants

1. Restaurants

2. TWFG Commercial Business SchoolRestaurants Learning Objectives To understand the important risk exposures for this class of business To be familiar with the common coverages provided in carrier enhancements To be aware of the admitted market appetite To be able to successfully complete ACORD applications

3. TWFG Commercial Business SchoolRestaurants Glossary Franchise UL 300 Liquor Sales Improvements & Betterments

4. TWFG Commercial Business SchoolRestaurants Risk Exposures Operations Franchise vs. Non-franchise Years in Business/Location/Expeience True Nature of Operations Hours of Operations % of Liquor Sales

5. TWFG Commercial Business School Restaurants Risk Exposures Property Design of Building Construction/PPC/Sprinkler Protection/Age of Building NFPA 96 Standards UL300 Approved Fire Suppression 3rd Party Service Contracts Deep Fat Frying Protection Type of Cooking Playground/Playscape Equipment

6. TWFG Commercial Business SchoolRestaurants Other Items of Importance Improvements & Betterments Pizza Delivery Loss Control GL Audit

7. TWFG Commercial Business SchoolRestaurants Special Exposures for Specific Classes Fast Food Barbeque Caterers

8. TWFG Commercial Business SchoolRestaurants Carrier Enhancements Many carriers apply class specific coverages based sales, property values, and limits of coverage selected. Frequently the additional coverages or enhancements are only adequate for incidental or moderate exposure levels It will be up to you and your prospect/insured to determine if the level of coverage provided meets their needs.

9. TWFG Commercial Business SchoolRestaurants Carrier Enhancements Spoilage Off Premises Utility Services-Direct Damage Business Income

10. TWFG Commercial Business SchoolRestaurants Carrier Appetite Hartford Travelers AFI

11. TWFG Commercial Business SchoolRestaurants Preferred SIC Codes Support Document Located on the Branch & GA websites

12. TWFG Commercial Business SchoolRestaurants Submission Checklist A submission checklist is the easiest way to ensure that all exposures have been accounted for and addressed Submission checklist is available on the Branch & GA websites

13. TWFG Commercial Business SchoolRestaurants Case Study This segment includes a Case study. For those Branches participating in the Certified Commercial Branch Agency (CCBA) Program you will need to complete and pass in order to receive credit for this segment. For Branches not participating, the Case Study is optional For GA agents the Case Study is optional. The Case Study material will be available on the Branch and GA portals RETURN COMPLETED CASE STUDIES TO MARK GLAUG @ mglaug@twfg.com

14. TWFG Commercial Business SchoolRestaurants QUIZ

15. TWFG Commercial Business SchoolRestaurants 1. A restaurant’s primary property exposures come from the cooking operations. Name the three elements of the NFPA 96 Standards that deal with kitchen fire safety:

16. TWFG Commercial Business SchoolRestaurants • A restaurant’s primary property exposures come from the cooking operations. Name the three elements of the NFPA 96 Standards that deal with kitchen fire safety: a. UL 300 approved cook-top and fryer fire suppression system b. Regularly scheduled inspection and cleaning of hood and duct vents, grease traps and fire suppression systems. c. Proper separation of cooking surfaces from deep frying operations

17. TWFG Commercial Business SchoolRestaurants 2. Name three Operations Exposures that are evaluated with a restaurant submission.

18. TWFG Commercial Business SchoolRestaurants 2. Name three Operations Exposures that are evaluated with a restaurant submission. a. Franchise vs. Non-Franchise b. Years in business at the same location with the same management c. True nature of operations d. Hours of operations e. Liquor sales as a % of total sales

19. TWFG Commercial Business SchoolRestaurants 3. Name two Property Exposures other than cooking.

20. TWFG Commercial Business SchoolRestaurants • Name two Property Exposures other than cooking. a. Design of building b. Construction c. Age of building d. Sprinkler Protection

21. TWFG Commercial Business SchoolRestaurants • Name an important and often overlooked type of BPP coverage for restaurant owners who do not own the building, and describe how this coverage applies.

22. TWFG Commercial Business SchoolRestaurants • Name an important and often overlooked type of BPP coverage for restaurant owners who do own the building, and describe how this coverage applies. a. Improvements and betterments b. This is the insured’s “use” interest in improvements that the insured has paid for. Because the improvements become part of the building, the insured (as a tenant) does not own them and cannot take them with him if he were to leave. However, the insured does expect to be able to use these improvements. It’s the value of this “use” that is insured. In simple terms, the use value is the cost divided by the depreciable life.

23. TWFG Commercial Business SchoolRestaurants • Name three important restaurant related coverages that are often addressed in carrier enhancements, but the limits need to be carefully selected. Describe each.

24. TWFG Commercial Business SchoolRestaurants • Name three important restaurant related coverages that are often addressed in carrier enhancements, but the limits need to be carefully selected. Describe each. a. Spoilage – Spoilage of perishable stock due to a loss of power or breakdown of cooling machinery b. Off-Premises Utility – Loss of power due to physical damage to an off-premises power utility source c. Business Income – Lost revenue and continuing expenses due to a partial or complete shutdown after a covered loss

25. TWFG Commercial Business SchoolRestaurants Questions???