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Good Day to you, Dear Reader,

 

     I truly hope this installment of the TMIT finds you healthy and in good spirits.  As things get back to the “old normal”, (at least that is what I am calling it) as several states are either loosening restrictions or throwing the doors back open completely, I want to point out a few potential insurance issues to keep in the back of your mind.

     Many of my distillery, brewery, meadery, and winery friend are now being allowed to have some limited outdoor seating areas for their tasting room operations.  Although the restrictions vary depending on the state they are located in, this is a huge help in getting back to business, getting sales flowing again, and going back to what we use to know.  Partner that with the nicer weather that many are seeing around the country and this is a big win-win for many.

     With that though, as always, there are “insurance” ramifications to consider.  That is why I, InsuranceMan 2.0!!!, am here to assist you and shed light into the dark recesses of insuranceology that you may have not thought of, but that could impact you and your operations.  Regarding your insurance and some outdoor seating areas there are several insurance items to consider. 

     Your insurance policy has a “Description of Premises” as well as an “All Premises you Own, Rent, or Occupy”.  This shows up on your General Liability as well as your Liquor Liability policies as well as you property policy, and seemingly would place limits on you in regard as to where you can operate your business and potentially serve your products.  That is not really the case.  Modern Commercial General Liability (CGL) policies do not have “location specific” coverage restriction.  However, some carriers may have very tight restriction on this via different endorsements and demand to know if you are every doing off-site tastings, selling, etc.  Although it is somewhat rare, you had best make certain you know if you are permitted by the carrier to operate in adjoining or adjacent property areas, i.e. Parking Lots, Alleyways, Sidewalks, etc.  Just because your state, local government, local law enforcement is allowing for you to temporarily operate this way, it does not by default mean that your insurance carrier may be on board.  Better safe than sorry.

     Another insurance section to be mindful of is your property portion.  Once again, there is a “Description” or “All Premises” denotation of where you operate your business from.  For your Business Personal Property (BPP) it is usually strictly limited to that location as cited in the policy.  Why does this matter, you may be wondering?  Well, let’s say that you have moved tables, chairs, a temporary bar, and a bunch of your product to a location across the street in order to serve products and operate your business.  What if something happens to all of your “stuff” while it is away from you “Described” location???  Well, if you are strictly limited by your policy language there could be a big problem since your “stuff” was not where you said it was.

     The good news side to this is that many carriers provide a bit of a “Give Back” here, by providing an endorsement that states that they consider your “Premises” to be your designated area of operations and anything within 1,000 feet of your described location.  That is great news and would provide coverage for your BPP at your new al fresco location across the street.  Again, you need to know what your policy says prior to getting excited to get back to normal and selling drinks.  It could save you a lot of trouble down the road.

     “Ummm …  I have a question for you, InsuranceMan 2.0!!!.” 

     Alright, dearest reader, please proceed.

     “Yes, so what happens if I am in and area where there really is no possibility for outdoor seating but I have made arrangements to set up an outdoor venue a few miles from my distillery in a friends parking lot?”

     I am so very glad you asked.  This is something that I have been dealing with recently, so your question is quite apropos.  If you are in a situation where you cannot set up anything right at your location and the only option is to set up outside of that 1,000 foot parameter, it should not be a problem.  Most carriers are willing to endorse the policy with a secondary location to ensure that coverage would be in effect.  They will want to most likely know items such as the address of the location, how long you plan on occupying that area, what the other business is that is operating from that location, and how much BPP value you plan on having located there.  Once those things are known, the carrier should be able to file the endorsement and enact coverage for you.  Some carriers may require additional premium for this, others may not.  It just depends on who it is and how they do things.  Keep in mind as well, once you are back to the old normal and allowed to have folks flood your indoor seating area of your tasting room, make sure to remove the secondary location from your policy, mmkay?!?!

     With that dear, loyal, TMIT readers, I will be off for now.  Please know that you can contact me at any time with questions (even if I am not your insurance agent … and why am I not your agent?!?!  Really??? Obviously I am knowledgeable beyond my years, provide you with incredibly insightful information, and I am an Insurance Superhero for crying-out-loud), or concerns.  I am always here to assist you in any and every way possible and I love sharing with anyone that is wanting or needing assistance.  Until next time, dearest reader …

 

Stay Vigilant,

 

Aaron Linden

a.k.a. InsuranceMan 2.0!!!

307-752-5961

aaron@roaringforkins.com   or  insuranceman2.0@yahoo.com

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