PRODUCT: Hospitality and nightlife industry coverage
COMPANY: Entertainment Risk
BEST RATING: A- (Excellent), Size XIII
AVAILABILITY: Coverage is available through approved independent agents and brokers.
FOCUS: More than 69,000 nightlife and entertainment establishments in the U.S. generate more than $25 billion in annual revenue, according to an August 2016 industry report conducted by IBIS World, which researches U.S. economic data.
But the industry is as risky as it is lucrative. The service-based retail business is driven not only by the current economy and alcohol-related trends, but also individual income and entertainment preferences. And the success of each establishment depends on its ability to drive traffic and develop a devoted following.
“The nightlife sector is an inherently risky industry,” says Scott Wessing, executive vice president of claims and risk services at Entertainment Risk. “Time and time again, we see individuals with severe losses that have been passively handled by generalized claims and risk management practices, leading to undesirable outcomes.”
By contrast, Entertainment Risk focuses exclusively on coverage for the nightlife and entertainment sector. “Our approach allows us to provide protection where liability is clear and strategically fight where negligence is absent,” Wessing says. “We want individuals to have a clear understanding of the cost of risk and to structure an insurance program that is most effective and cost efficient.”
UNDERWRITING: Entertainment Risk offers monoline general liability, package GL and liquor liability, commercial property in conjunction with GL and commercial excess liability if it also writes the underlying GL.
Coverage includes a general aggregate limit of $2 million; products-completed operations aggregate limit of $2 million; personal and advertising injury limit of $1 million; each occurrence limit of $1 million; liquor liability limit of $1 million per accident; damage to premises rented to policyholder at $1 million; assault and battery available up to $1 million; employee benefits liability up to $1 million; hired/nonowned auto liability up to $1 million; excess liability up to $5 million; and commercial property coverage with an enhancement endorsement.
MINIMUM PREMIUM: Depends on class rate and territory.
TARGET: Small businesses, such as sports bars, taverns, local neighborhood establishments, Tiki or beach bars, saloons, beer gardens, pool halls, lounges, live music venues, brew pubs and cocktail bars; fine dining or entertainment establishments, such as dinner theaters, supper theaters and themed restaurants; and entertainment venues, such as comedy clubs, nightclubs, gentlemen or ladies clubs, live music venues, mixed exposure mega venues and entertainment centers.
COVERAGE TERRITORY: AZ, CA, CO, FL, GA, IL, LA, MA, MD, MI, NJ, NV, NY, TN, TX, UT and VA.
CONTACT: Scott Wessing, executive vice president of claims and risk services; Entertainment Risk, 2760 Rasmussen Road, Suite 205D, Park City, UT 84098; 844-368-7475, ext 701.
Ronimarie Acord is an IA contributor.
