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by Jen Davey Jen Davey No Comments

Is Alcohol Awareness Training Necessary?

Is Alcohol Awareness Training Necessary?

Serving drinks may seem glamorous and fun, but it’s also serious business. When alcohol is involved, people — and situations — can sometimes get out of hand.

That’s where alcohol-awareness training programs come in. These programs educate servers about responsible alcohol consumption and offer strategies for protecting guests, employees and the servers themselves.

Alcohol service involves many risks. Failure to act responsibly could result in fines, imprisonment, losing your liquor license, increased insurance costs, or losing your business.

An alcohol certification program is designed to prevent intoxication, underage drinking, and drunk driving by enhancing the fundamental “people skills” of servers, employees, and consumers of alcohol. Alcohol awareness programs provide individuals with the knowledge and confidence they need to recognize potential alcohol-related problems and intervene to prevent alcohol-related tragedies.

WHO SHOULD BE CERTIFIED?

Anyone who serves alcohol in a licensed establishment should participate in a training course and receive their certification – Bartenders, Bar Backs, Servers, and Managers.

Alcohol certification is required by many bars and insurance companies.

Alcohol awareness training is often used by establishments to get lower insurance rates and as a sound defense in the face of any legal action taken against them. But it has also become increasingly important for servers to protect themselves. Due to dram-shop liability laws, servers themselves can be held responsible for any harm that intoxicated or underage guests perpetrate on themselves or others. So, it is important for bartenders to be aware of their liability and to protect themselves professionally and personally through this training.
Alcoholic Certification is now mandatory in many states. Every state has its own laws regarding the serving of alcohol, so you’ll need to check with your local liquor control board to find out what training is required. Listed below are the states that HIG writes liquor liability insurance and their laws regarding alcohol awareness training.

CT – Not state mandated

MA – Not state mandated but cities/counties may make mandatory

RI – Mandatory

PA – Mandatory

NC – Not state mandated

VT – Mandatory

NH – Mandatory for new licensees

You will find that many of the state restaurant associations offer alcohol awareness training programs.  These classes may be available online, in a classroom or on premises.

As a business owner, you need to be knowledgeable about the laws for alcohol awareness training along with understanding your liquor liability insurance policy.  Does your policy have an endorsement/exclusion that requires the servers to be certified or coverage will be denied?

As a niche writer of liquor liability insurance, we are here to assist you!  Contact Hospitality Insurance Group for your liquor liability insurance needs or find an agent here to request a quote for coverage.

by Jen Davey Jen Davey No Comments

Alcohol-Related Insurance Claims Against Our Restaurant Policyholders & How We Removed The Risk

Alcohol-Related Insurance Claims Against Our Restaurant Policyholders

In today’s world, businesses are sued daily and Insurance Defense Claimsheld liable for practically anything – especially alcohol-related insurance claims. One verdict in Boston topped $40 million, while two
bar lawsuit cases settlements in Worcester, MA each topped $20 million.

As a multi-state liquor liability insurance company, it’s our responsibility to protect our policyholders.

Take a look at some of the alcohol-related insurance claims and dram shop lawsuits against our restaurant policyholders that our team of Attorney’s have successfully defended.

CASE #1 Negligent Security General Liability A&B

PLAINTIFF: An underage patron was served at our policyholder’s establishment. He then randomly attacked other patrons with a hatchet concealed beneath his overcoat.

CLAIM: The claim filed against our policyholder alleged their failure to secure the premises.

VERDICT: After only one hour of deliberation, the jury concluded that the assailant’s actions were unforeseen and defense verdict was entered.

ESTIMATED EXPOSURE: High Six Figures

CASE #2 Dram Shop Liquor Liability

PLAINTIFF: A patron ordered several drinks at our policyholder’s establishment. Upon leaving, his vehicle collided with the rear of another motorist’s van.

CLAIM: The injured motorist filed a dram shop lawsuit against the policyholder after becoming a quadriplegic due to the impact of the accident.

 VERDICT: An arbitrator concluded that the evidence in this case, was inconclusive as to whether the patron was ever at the policyholder’s establishment on the date of the accident. The arbitrator sided with the defense.

ESTIMATED EXPOSURE: High Seven Figures

CASE #3 Dram Shop Liquor Liability A&B

PLAINTIFF: The plaintiff was struck in the face with a pool stick resulting in a fractured jaw that was wired shut for several months.

CLAIM: The lawsuit filed against the policyholder included counts involving negligent security and negligent service of alcohol to the patron who injured the plaintiff.

VERDICT: The jury concluded that the assailant’s actions were unforeseen and a defense verdict was entered.

 ESTIMATED EXPOSURE: High Six Figures

 

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Hospitality Insurance Group is a liquor liability insurance group writing insurance for bars and taverns in Connecticut, Massachusetts, New Hampshire, North Carolina, Pennsylvania, Rhode Island and Vermont.

For more information about how you can work with Hospitality Insurance Group as an Independent Insurance Agent or obtain a quote for liquor liability insurance, click here to request a call from us, email or office visit from one of our local representatives near you.

by Jen Davey Jen Davey No Comments

Agent Update: New & Renewed Business

You asked, we listened! Effective March 15, 2017, Hospitality Insurance Group will be sending invoices on new and renewal business. Many of our agency partners requested that policies be mailed out upon binding with invoices enclosed in order to make it easier for payment to be remitted to us.

Effective March 15, 2017, Hospitality Insurance Group will be sending invoices on new and renewal business. Many of our agency partners requested that policies be mailed out upon binding with invoices enclosed in order to make it easier for payment to be remitted to us.

Many of our agency partners requested that policies be mailed out upon binding with invoices enclosed in order to make it easier for payment to be remitted to us.

What does this actually mean to our agency partners?

We will no longer be holding new and renewal policies for payments to arrive. Once we receive the bind order and PROOF of payment, we will be mailing our agents the policies along with the invoices. We ask that when you remit payment to us that you enclose the invoice so that we can appropriately match the funds to the correct account.

Endorsements will still be emailed electronically to your agency. The endorsement Additional Premium or Return Premium will be reflected on the last page of the revised declaration page sent to your agency and WILL not be accompanied by an invoice. There is no change to the endorsement processing from what currently exists.

We hope that you will be pleased with this new procedure!

by Jen Davey Jen Davey No Comments

Strength, Stability and Service

Strength, Stability, and Service 

For the last 31 years, Hospitality Insurance Group has strived to understand the frustrations our insurance brokers
encounter when it comes to inconsistent approaches in obtaining liquor liability coverage.

We understand the difficulty of:

  • Finding coverage for a restaurant with higher than normal liquor receipts
  • Having to replace coverage on a risk that has added live entertainment
  • Working with a risk that has Doormen/bouncer exposures that are causing your current markets to shy away

So we’re kicking off 2017 keeping these struggles in mind and hope that when you think of Hospitality Insurance Group, you think of strength, stability, and service.

Strength

  • We put the needs of our insured’s first with our financial strength
  • We offer broader coverage than any of our competitors within this segment of the industry
  • Aggressive defense attorneys who are committed to obtaining the best possible outcomes

Stability

  • Providing peace of mind and protection to the hospitality industry for 31 years
  • Admitted Carrier backed by the state guaranty fund offering stability in a time of need
  • A time-tested claims department that is accustomed to navigating complex or high profile matters

Service

  • Dedicated and knowledgeable staff providing the service you’ve come to expect
  • Proven commitment to this class of business, demonstrated by our consistent appetite and unwavering approach to underwriting
  • The addition of CGL and Property Lines of Business to our product offering in order to provide a more comprehensive package and assist in rounding out accounts
  • An accessible and professional claims department ready to provide unparalleled service to policyholders

 

Hospitality Insurance Group Taking the risk out of hospitality and providing strength, stability, and service for 31 years.

 

by Jen Davey Jen Davey No Comments

How New Restaurant Trends Have Affected Liquor Liability Insurance

How New Restaurant Trends Have Affected Liquor Liability Insurance 

Drinking games at bars, BYOB, happy hour, and more. As we celebrate the 25th anniversary of our CEO John Tympanick, John looks back at the last 25 years in business and how new restaurant trends have affected liquor liability insurance.

25 employees, 6 states, over 440 Massachusetts agents, and 1000+ agents across Connecticut, New Hampshire, North Carolina, Pennsylvania, Rhode Island and Vermont. John Tympanick looks back at the last 25 years as Hospitality Insurance Group’s CEO and discusses the restaurant industry trends and changes he has seen over the years that have had an impact on insurance policies.

A lot has evolved over the last 25 years. Take a look at some of the trends we’ve seen in the industry over the years and how in fact it has affected insurance policies of businesses that serve alcohol.   

Ditching The Suit & Tie

More and more companies are looking to promote a laid back workplace and offer beer on Friday’s. What many employers and HR departments don’t understand is they need liability insurance for something like that. What happens when an employee has had too much to drink, and they get in the car, and the unnecessary happens?   

BYOB

Under Massachusetts law, restaurants with 30 seats or fewer, dine-in service, or who already have existing liquor liability insurance are unable to offer “BYOB” allowing a patron to bring in their own alcohol onto their premises.

However, Massachusetts restaurants without an existing liquor license, on the other hand, may or may not be allowed to obtain BYOB licenses depending on the municipality in which they are located.

While BYOB may seem like a great alternative to restaurants that can’t obtain liquor licenses, Tympanick advises that there is still a risk involved.

“A lot of people think by letting someone BYOB; there isn’t a liability. But what happens when someone comes in with their bottle, already intoxicated, and leaves your restaurant? We think there is definitely an exposure there for the restaurant.”

A waitress in Somerville also reacted to the BYOB concept in a blog by Thrillist stating: “I wouldn’t want to work at a BYOB because it makes policing intoxicated customers and preventing over-serving difficult, “but it does shift [some] responsibility away from the server and the restaurant.”

Alcohol In Supermarkets

Remember when alcohol became available in supermarkets like Stop & Shop back in 2006?  Current laws in Massachusetts only permit a maximum of 3 liquor licenses per corporation in the state. This is why you see alcohol available in some grocery stores but not others. We do think that in the next 25 years, Massachusetts will reconsider and make more licenses available to corporations as mentioned in an article here from 2011.

Cork It

Another trend we’ve seen in the last 25 years is charging a “cork fee” where the customer brings the liquor to the restaurant, and they charge you a bottle fee. Although this may help a restaurant save on costs and space for inventory, does having a cork fee increase the liability for a restaurant because they are now charging? We believe either way there is a liability, but ultimately it’s a judge’s decision.

Sunday Funday

Possibly because of the economy, the state has become more lenient on “Blue Laws.” Back in 2003, residents of Massachusetts were not allowed to purchase alcohol on Sundays. Then in 2014, Massachusetts altered its “Blue Laws’’ to allow for retail liquor stores to open as early as 10 am on Sundays.

Increase in Claims For Assault & Battery

As for the insurance industry, insurers have opted to tighten their belts with restaurants by placing sub limits on liquor liability assault and battery coverage. Out of the total number of insurance claims by restaurants, 35% are assault and battery related, a huge increase compared to 25 years ago.

For that reason, Hospitality Insurance Group does not sub-limit their insurance policies to their insured, whereas the majority of our competition charges extra for this coverage.

Restaurants Getting Creative

With more and more restaurants opening, we see that they are looking for a competitive advantage among the competition to stay engaged with their patrons. Creative new restaurant concepts where “flaming drinks” are offered may seem innovative,  what happens if that drink burns someone? Or offering games such as “beer pong” also known as “Beirut” at bars encouraging patrons to drink more.  As more restaurants move toward computerized systems and online technology, cyber security is becoming an area with some large uninsured exposures in some cases. While cyber security is not a current offering at Hospitality Insurance Group, we do see this being a possibility in the future.

But what about the next 25 years and where the hospitality industry is headed?

As allowed by some states, including Connecticut,  restaurants can stay open until 3 or 4 am. Do we think that will end up happening in Massachusetts? Probably not, because nothing good happens after midnight, let alone 3 am.

Despite consumer interest and other states like , we also don’t foresee Massachusetts lifting the current happy hour ban in place.

As for Hospitality Insurance Group, Tympanick says “We’ve seen a lot of our competitors in various states stop offering liquor liability coverage for one reason or another, so we’re here to stay.”

If you’re a restaurant looking for coverage, please contact one of our state representatives to find a local independent insurance agency near you. 

by Jen Davey Jen Davey No Comments

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